SHAREHOLDER LETTER
- --------------------------------------------------------------------------------
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)
- --------------------------------------------------------------------------------
Dear Shareholder:
This semiannual report for Franklin California Tax-Free Income Fund covers the
period ended September 30, 1999. During the six months under review, the U.S.
bond markets continued to experience challenging times. The yield on the
benchmark 30-year Treasury bond steadily increased, from 5.63% on March 31,
1999, to 6.05% on September 30, 1999 -- reaching a high of 6.28% on August 12,
1999. Concerned about domestic inflationary tendencies, the Federal Open Market
Committee (FOMC) raised the federal funds target rate to 5.00% at its June 30
meeting, and to 5.25% on August 24, when the FOMC adopted a neutral bias toward
further increases. This appeared to stabilize the bond markets for the short
term.
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.
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.
CONTENTS
<TABLE>
<S> <C>
Shareholder Letter ........................ 1
Performance Summary ....................... 8
Special Feature:
Uncovering Tax-Free
Opportunities ............................ 10
Financial Highlights &
Statement of Investments .................. 15
Financial Statements ...................... 56
Notes to
Financial Statements ...................... 59
</TABLE>
[PYRAMID GRAPH]
*****
Morningstar Rating(TM)
Morningstar Inc., a nationally
recognized mutual fund rating
service, awarded Franklin
California Tax-Free Income
Fund - Class A a 5-star overall
rating as of September 30, 1999,
measuring performance against
1,611; 1,241 and 375 municipal
funds for 3-, 5- and 10-year
periods, respectively.(*)
(*)Source: [MORNINGSTAR LOGO](C) 9/30/99.
Morningstar does not guarantee the accuracy
of this information. Past performance does
not guarantee future results. Morningstar
proprietary ratings reflect historical risk-
adjusted performance as of September 30,
1999. The ratings are subject to change every
month. Morningstar ratings are calculated
from the fund's 3-, 5- and 10-year average
annual returns in excess of 90-day Treasury
bill returns with appropriate fee
adjustments, and a risk factor that reflects
fund performance below 90-day T-Bill returns.
Franklin California Tax-Free Income Fund
received four stars for the 3-year period and
five stars for the 5- and 10-year periods.
The top 10% of the funds in a broad asset
class receive 5 stars, the next 22.5% receive
4 stars, and the next 35% receive 3 stars.
Ratings are for Class A shares only; other
classes may vary.
This section is not part of the
shareholder report.
The economy's direction and its effect on inflationary pressures will contribute
to the level of volatility that impacts the bond markets in the near future.
During the period under review, many investors reacted very swiftly to new
releases of economic data or Federal Reserve Board announcements, and in many
instances the market overcorrected. Investors with short-term investment
horizons may view such instability as unfavorable. However, we prefer to take a
long-term approach toward investing and find that recent market conditions
afforded us opportunities not only to increase the funds' income-earning
potential, but also to enhance the portfolio's overall structure.
CALIFORNIA ECONOMIC UPDATE
Calendar year 1999, through the end of the reporting period, marked California's
sixth consecutive year of economic expansion and fifth straight year in which
the state's economic growth and job creation exceeded the national average.
Residential real estate activity rose 11% from the first to second quarters of
1999.(2) Meanwhile, in August, the state's unemployment level dropped to 5%, a
number not recorded since October 1989, predating the early '90s recession.(3)
The reporting period saw more of the state's 1990s' economic transition from
heavy dependence on the defense industry, to greater reliance on the service
sector.
California's prominent Internet, multimedia and biotechnology industries
highlight the trend toward a knowledge-based service economy, where the state is
home to one-in-five computer software jobs in the nation. The motion picture and
related video, cable and satellite programming industries, as well as the travel
and tourism industries, also contributed to the service sector's strength.
Manufacturing, despite declining as a percentage of the gross state product,
continued to benefit from the value-added, high-technology sector. High
technology comprised three-quarters of the state's exports as of the end of the
reporting period.(2)
2. Source: California Trade and Commerce Agency, California Economic Review,
6/99.
3. Source: California Employment Development Department, Labor Market
Information, 9/99. Figures are not seasonally adjusted.
The state's diversified and growing economy as well as its improved fiscal
management contributed to Standard & Poor's decision to upgrade the state's debt
to AA- from A+ on August 10. This marked the first time in eight years that
Standard & Poor's, Moody's Investors Service and Fitch IBCA Inc., three
international credit rating agencies, have viewed California's credit as double-
A.(4) The fiscal year 2000 budget was the first budget California adopted on
time in a number of years. This timely passage and the budget's conservative
revenue assumptions influenced the state's improved credit rating.(5)
California's $19 billion-plus bond issuance from January through August
represents a 17.7% decline from the same period a year ago. The supply of
California municipal bonds is expected to increase in October and November, with
very few bonds issued after the first week of December. All issues will settle,
or be paid for, before year-end to circumvent any Year 2000 (Y2K) computer
system concerns. This is a mere precaution, as California's Department of
Information Technology expects all mission critical systems to be Y2K compliant
by the end of September.(6)
4. This does not indicate the agencies' rating of the fund.
5. Source: The Bond Buyer, 8/11/99.
6. Source: Moody's Investors Service, Municipal Credit Research, 9/99.
WHAT IS A
PREREFUNDED BOND?
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 price. Our strategy aims to capture the
bond's premium, increase the fund's call protection and protect its share value.
PORTFOLIO NOTES
Generally rising interest rates during the six-month period under review
presented challenges for the fund's share price, as bond prices fall when
interest rates rise. For the six months ended September 30, 1999, the 30-year
Treasury bond price fell 7.55%, and the Bond Buyer 40, a reasonable proxy for
the type of securities in the fund's portfolio, was off 9.39%.(7) By comparison,
your fund's Class A share price, as measured by net asset value, declined only
5.81%.
The rise in interest rates created an excellent opportunity for Franklin
California Tax-Free Income Fund to sell lower-yielding bonds at a loss and
reinvest the proceeds at significantly higher yields. The fund's $317 million
Foothill/Eastern Corridor Agency Toll Road Revenue bond purchase is an example
of such a higher-yielding trade. Meanwhile, the fund was able to offset losses
from the sale of lower-yielding bonds and reduce its call exposure by selling
prerefunded bonds at a premium. The portfolio's average maturity increased from
21.2 to 23.4 years during the period under review. In addition, the fund held
59.1% of total long-term investments in AAA-quality bonds as of September 30,
1999, reflecting our holdings' fundamentally high quality. Higher-rated bonds
generally exhibit greater price stability than their lower-rated counterparts,
better ensuring the safety of your principal and income stream.
7. Sources: Lehman Brothers; The Bond Buyer 40 Municipal Bond Index. The index
is unmanaged and includes reinvested dividends. One cannot invest directly in an
index.
A BOND STORY
The Foothill/Eastern Corridor Agency Revenue bonds purchased by your fund during
the reporting period were issued by a joint-powers authority known as the
Transportation Corridor Agencies (TCA). The TCA was formed by the California
state legislature to design, finance, construct and operate three toll roads in
Orange County. They include the 24-mile Eastern Toll Road, the 15-mile San
Joaquin Hills Toll Road and the 28-mile Foothill Toll Road. The $1.75 billion
Transportation Corridor Refunding was the largest single offering in the
tax-free bond market at the time of its issue, in mid-July. The proceeds from
this sale will refinance bonds originally issued by the Agency in 1995, when the
roads' construction began. The issue's large size and slightly higher yield made
it a noteworthy event in the tax-free bond market this year.(8)
Looking forward, Franklin California Tax-Free Income Fund is positioned to take
advantage of higher interest rates and should perform well during the upcoming
period. Please keep in mind that interest rates and thus, bond prices, rise and
fall depending on the economy. Such fluctuations are a normal part of investing,
and one should expect this when investing in any security, including municipal
bonds. Municipal bond funds can help lower such volatility, as they offer a
level of diversification that is difficult for individual investors to achieve
on their own.
QUALITY BREAKDOWN*
Based on Total Long-Term Investments
9/30/99
[PIE GRAPH]
AAA - 59.1%
AA - 13.5%
A - 9.5%
BBB - 17.3%
Below Investment
Grade - 0.6%
(*)Quality breakdown may include internal ratings for bonds not rated by a
national rating agency.
8. Source: The Bond Buyer, 7/12/99.
PORTFOLIO BREAKDOWN
9/30/99
<TABLE>
<CAPTION>
% OF TOTAL
LONG-TERM
SECTOR INVESTMENTS
- -----------------------------------
<S> <C>
Prerefunded 18.9%
Utilities 16.8%
Transportation 15.5%
Tax-Supported Debt 12.2%
Hospital & Health Care 11.3%
Subject to Government
Appropriation 11.1%
General Obligation 5.7%
Housing 4.8%
Higher Education 1.7%
Other Revenue 1.5%
Corporate-Backed 0.5%
</TABLE>
This discussion reflects our views, opinions and portfolio holdings as of
September 30, 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.
We encourage you to discuss your financial goals with an investment
representative. As always, we appreciate your support, welcome your questions
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
DIVIDEND DISTRIBUTIONS
4/1/99 - 9/30/99
<TABLE>
<CAPTION>
DIVIDEND PER SHARE
----------------------------------------
MONTH CLASS A CLASS B CLASS C
- ----------------------------------------------------------------------
<S> <C> <C> <C>
April 2.95 cents 2.67 cents 2.58 cents
May 2.95 cents 2.67 cents 2.58 cents
June 3.00 cents 2.64 cents 2.64 cents
July 3.00 cents 2.64 cents 2.64 cents
August 3.00 cents 2.64 cents 2.64 cents
September 3.05 cents 2.73 cents 2.72 cents
- ----------------------------------------------------------------------
TOTAL 17.95 CENTS 15.99 CENTS 15.80 CENTS
</TABLE>
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 9/30/99
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
<TABLE>
<CAPTION>
CLASS A CHANGE 9/30/99 3/31/99
------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value -$0.43 $6.97 $7.40
Distributions (4/1/99 - 9/30/99)
---------------------------------
Dividend Income $0.1795
Long-Term Capital Gain $0.0052
TOTAL $0.1847
</TABLE>
<TABLE>
<CAPTION>
CLASS B CHANGE 9/30/99 3/31/99
------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value -$0.42 $6.97 $7.39
Distributions (4/1/99 - 9/30/99)
---------------------------------
Dividend Income $0.1599
Long-Term Capital Gain $0.0052
TOTAL $0.1651
</TABLE>
<TABLE>
<CAPTION>
CLASS C CHANGE 9/30/99 3/31/99
------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value -$0.42 $6.97 $7.39
Distributions (4/1/99 - 9/30/99)
---------------------------------
Dividend Income $0.1580
Long-Term Capital Gain $0.0052
TOTAL $0.1632
</TABLE>
Past performance is not predictive of future results.
PERFORMANCE
<TABLE>
<CAPTION>
INCEPTION
CLASS A 6-MONTH 1-YEAR 5-YEAR 10-YEAR (2/1/77)
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cumulative Total Return(1) -3.37% -1.73% +34.03% +92.94% +270.32%
Average Annual Total Return(2) -7.49% -5.88% +5.12% +6.32% +5.75%
Distribution Rate(3) 5.03%
Taxable Equivalent Distribution Rate(4) 9.18%
30-Day Standardized Yield(5) 4.79%
Taxable Equivalent Yield(4) 8.74%
</TABLE>
<TABLE>
<CAPTION>
INCEPTION
CLASS B 6-MONTH (1/1/99)
------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cumulative Total Return(1) -3.50% -2.64%
Aggregate Total Return(2) -7.27% -6.41%
Distribution Rate(3) 4.70%
Taxable Equivalent Distribution Rate(4) 8.58%
30-Day Standardized Yield(5) 4.43%
Taxable Equivalent Yield(4) 8.09%
</TABLE>
<TABLE>
<CAPTION>
INCEPTION
CLASS C 6-MONTH 1-YEAR 3-YEAR (5/1/95)
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cumulative Total Return(1) -3.52% -2.29% +13.95% +25.06%
Average Annual Total Return(2) -5.36% -4.25% +4.11% +4.96%
Distribution Rate(3) 4.64%
Taxable Equivalent Distribution Rate(4) 8.47%
30-Day Standardized Yield(5) 4.39%
Taxable Equivalent Yield(4) 8.01%
</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. Six-month return has not been
annualized. Since Class B shares have existed for less than one year, the
figures for that class represent aggregate total return from inception,
including the maximum sales charge.
3. Distribution rate is based on an annualization of the respective class's
September monthly dividend and the maximum offering price per share on September
30, 1999.
4. Taxable equivalent distribution rate and yield assume the 1999 maximum
combined federal and California state personal income tax bracket of 45.22%,
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 September 30, 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.
UNCOVERING TAX-FREE OPPORTUNITIES
[SPECIAL FEATURE GRAPHIC]
[PICTURE OF Rafael Costas, Senior Vice President and Director of
RAFAEL COSTAS] Franklin's Municipal Research Department, discusses how
research is an integral part of Franklin's tax-free income
funds' success.
Q: Could you provide an overview of Franklin's research department?
RAFAEL COSTAS: We have one of the industry's largest municipal research staffs,
allowing us to routinely analyze more than 2,000 debt issuers a year. The
research department analysts work closely with our portfolio managers, who rely
on these analysts when making buy and sell decisions. With a focus on in-depth
research and the discipline to buy when others are selling, we often are able to
find exciting opportunities at temporarily depressed prices. Generally, we
concentrate on investment-grade issues. Of course, for our high yield funds, we
also look for below investment-grade bonds that we feel offer appropriate
rewards for the increased risk.
Q: What are some advantages of Franklin's size and reputation?
RAFAEL: Today, Franklin is one of the nation's leading tax-free fund managers.
Our size, with approximately $50 billion of tax-free investments, often enables
us to purchase investments at advantageous prices, which in turn, can help keep
investment costs low. We pass on these savings to shareholders in the form of
higher tax-free yields.(1) In addition, our size often makes us a favorite of
new issuers, as many prefer to work with a minimum number of investors.
This page is not part of the shareholder report.
Q: What type of tax-free bonds do you favor?
RAFAEL: We typically look for investment-grade bonds, as we try to provide our
shareholders high, current income with a relatively low level of risk. Most of
our investment-grade tax-free bond funds are composed of a high percentage of
securities rated AAA or AA, the highest ratings bonds can receive from national
credit rating agencies.(2) In addition, many of our purchases are insured
because of the prevalence of insurance in the municipal bond marketplace in the
past few years. Insured securities normally are rated AAA, further improving the
quality of our funds. For our high yield funds, we look for bonds which may be
out of favor but, in our view, still have solid fundamentals and the potential
to be upgraded. In fact, we devote much of our research efforts to finding such
bonds in the low investment-grade, high yield sectors.
Q: How do you research a bond?
RAFAEL: We emphasize detailed, high-quality research, which often enables us to
uncover attractive investments that others may have overlooked. When presented
with an opportunity, our analysts carefully consider such factors as the bond's
purpose, who will repay the bond, if the projections are reasonable, the payment
schedule and the issuer's credit history. We incorporate all of the numerical
findings in our internal, proprietary databases and spreadsheets created by our
analysts. With the processed information and analysis, we meet with our
portfolio managers to discuss the merits of each individual issue. The portfolio
manager's decision to buy a security will depend largely on our analysis of the
bond's credit quality and price. We continue to monitor our investments closely
after the purchase, looking for signs of potential problems as well as
additional opportunities.
1. For investors subject to the federal or state alternative minimum tax, a
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. Ratings can change.
This page is not part of the shareholder report.
Q: Do you feel it is important to personally meet management and municipal
officials?
RAFAEL: Very much so. Each year Franklin's analysts and portfolio managers visit
hundreds of sites to garner an understanding that can be obtained only through
personal inspection. They meet face-to-face with the project's management and
municipal officials to discuss firsthand any potential problems. Our analysts
also can use these meetings to discover new opportunities, often before they are
widely known.
Q: Do issuers and investment bankers ever come to Franklin?
RAFAEL: Our sizable presence in the municipal bond market frequently means that
issuers and their bankers come to us with new issues. In a typical day, we may
receive between 50 and 100 calls from brokers offering new and secondary issues.
Approximately three times a week, investment bankers visit our offices, usually
as part of an issue's road show. We view these as excellent opportunities not
only to buy issues at favorable prices, but also to propose changes to the
issue, enhancing its quality and appeal to our distinct standards.
[PICTURE OF Municipal research analyst Molly Butler discusses a bond issue
TWO WOMEN with portfolio manager Stella Wong.
IN FRONT OF
COMPUTER]
This page is not part of the shareholder report.
Q: How can Franklin's research influence the portfolio managers' investment
decisions?
RAFAEL: Our extensive research allows us to use a contrarian approach to
investing, because we firmly believe that near-term volatility can create
opportunities for greater long-term yields. For example, when Moody's, Standard
& Poor's or Fitch, three national credit rating agencies, downgrade a bond, many
investors sell the issue, sometimes reducing prices to what we believe are
attractive levels. As we evaluate our investments based on our internal
assessments, we can use these valuable opportunities to purchase what we believe
are high-quality issues at temporarily depressed prices.
External events can also lead to situations where bonds become undervalued. Over
the past few years, for example, Medicare reform negatively affected the
hospital bond sector, even for those hospitals in strong financial shape. As
many hospitals' credit profiles weakened, we were able to find value selectively
through our analysts' expertise. Seeking to take advantage of this, we
recommended such bonds to our portfolio managers who purchased them at a time
when the market seemed to be shunning these issues.
This page is not part of the shareholder report.
Q: Could you provide an example of a successful outcome of your research?
RAFAEL: Sure. A perfect example is Tucson Electric Power (TEP). It issued $579
million in tax-exempt debt in 1997-98. However, the utility had a long, troubled
history and its debt was rated below investment grade. So, Molly Butler, our
electric utility analyst, and I flew to Tucson and spent an entire day with
TEP's top executives and division heads. We discussed their history, current
position and future plans as well as challenged and questioned many of their
projections and assumptions. At the end of the day, we were satisfied that their
management team had a clear vision and a realistic plan for the future.
Q: How is TEP doing today?
RAFAEL: Since then, the rating agencies have raised TEP's credit rating and the
bonds have seen a significant increase in value. Of course, the ratings can
change again in the future. However, the bonds are still offering above-market
yields for our shareholders, because we were able to purchase the securities
when they were unpopular. We have an excellent relationship with management and
they often call Ms. Butler to discuss the latest releases of information.
THANK YOU, RAFAEL.
This page is not part of the shareholder report.
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Financial Highlights
<TABLE>
<CAPTION>
Class A
------------------------------------------------------
Six Months Ended
September 30,1999 Year Ended March 31,
(unaudited)(***) 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period ...... $ 7.40 $ 7.35 $ 7.09
-------------- -------------- --------------
Income from investment operations:
Net investment income .................... .19 .39 .42
Net realized and unrealized gains
(losses) ................................ (.42) .07 .27
-------------- -------------- --------------
Total from investment operations .......... (.23) .46 .69
-------------- -------------- --------------
Less distributions from:
Net investment income .................... (.18) (.39) (.42)
Net realized gains ....................... (.01) (.02) (.01)
-------------- -------------- --------------
Total distributions ....................... (.19) (.41) (.43)
-------------- -------------- --------------
Net asset value, end of period ............ $ 6.98 $ 7.40 $ 7.35
============== ============== ==============
Total Return(*) ........................... (3.37%) 6.43% 10.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ......... $ 13,928,125 $ 15,473,713 $ 14,767,307
Ratios to average net assets:
Expenses ................................. .56%(**) .57% .56%
Net investment income .................... 5.25%(**) 5.21% 5.71%
Portfolio turnover rate ................... 8.80% 18.66% 17.29%
</TABLE>
<TABLE>
<CAPTION>
Class A
---------------------------------------------------
Year Ended March 31,
1997 1996 1995
-------------- -------------- --------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period ............. $ 7.18 $ 7.11 $ 7.12
-------------- -------------- --------------
Income from investment operations:
Net investment income ........................... .43 .44 .45
Net realized and unrealized gains (losses) ...... (.04) .07 (.02)
-------------- -------------- --------------
Total from investment operations ................. .39 .51 .43
-------------- -------------- --------------
Less distributions from:
Net investment income ........................... (.43) (.44) (.44)
Net realized gains ..............................
(.05) -- --
-------------- -------------- --------------
Total distributions .............................. (.48) (.44) (.44)
-------------- -------------- --------------
Net asset value, end of period ................... $ 7.09 $ 7.18 $ 7.11
============== ============== ==============
Total Return(*) .................................. 5.67% 7.40% 6.37%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ................ $ 13,633,542 $ 13,312,666 $ 12,923,031
Ratios to average net assets:
Expenses ........................................ .56% .55% .55%
Net investment income ........................... 6.07% 6.14% 6.36%
Portfolio turnover rate .......................... 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.
(**)Annualized
(***)Based on average shares outstanding.
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Financial Highlights (continued)
<TABLE>
<CAPTION>
Class B
---------------------------------------
Six Months Ended Year Ended
September 30,1999 March 31,
(unaudited)(***) 1999(1)
---------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period ....... $ 7.39 $ 7.41
---------------------------------------
Income from investment operations:
Net investment income .................... .17 .10
Net realized and unrealized gains
(losses)................................. (.42) (.03)
---------------------------------------
Total from investment operations .......... (.25) .07
---------------------------------------
Less distributions from:
Net investment income .................... (.16) (.09)
Net realized gains ....................... (.01) --
---------------------------------------
Total distributions ....................... (.17) (.09)
---------------------------------------
Net asset value,end of period ............. $ 6.97 $ 7.39
=======================================
Total Return(*) ........................... (3.50%) .88%
RATIOS/SUPPLEMENTAL DATA
Net assets,end of period (000's) .......... $ 95,966 $ 43,674
Ratios to average net assets:
Expenses ................................. 1.14%(**) 1.14%(**)
Net investment income .................... 4.71%(**) 4.59%(**)
Portfolio turnover rate ................... 8.80% 18.66%
</TABLE>
(*)Total return does not reflect the contingent deferred sales charge, and is
not annualized for periods less than one year.
(**)Annualized
(***)Based on average shares outstanding.
(1)For the period January 1,1999 (effective date) to March 31,1999.
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Financial Highlights (continued)
<TABLE>
<CAPTION>
Class C
-------------------------------------------------------------
Six Months Ended
September 30,1999 Year Ended March 31,
(unaudited)(***) 1999 1998
-------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period ....... $ 7.39 $ 7.35 $ 7.09
----------- ----------- -----------
Income from investment operations:
Net investment income .................... .17 .35 .38
Net realized and unrealized gains
(losses) ................................ (.42) .06 .27
----------- ----------- -----------
Total from investment operations .......... (.25) .41 .65
----------- ----------- -----------
Less distributions from:
Net investment income .................... (.16) (.35) (.38)
Net realized gains ....................... (.01) (.02) (.01)
----------- ----------- -----------
Total distributions ....................... (.17) (.37) (.39)
----------- ----------- -----------
Net asset value, end of period ............ $ 6.97 $ 7.39 $ 7.35
=========== =========== ===========
Total Return(*) ........................... (3.52%) 5.70% 9.49%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ......... $ 431,526 $ 464,535 $ 295,976
Ratios to average net assets:
Expenses ................................. 1.14%(**) 1.14% 1.14%
Net investment income .................... 4.68%(**) 4.61% 5.13%
Portfolio turnover rate ................... 8.80% 18.66% 17.29%
</TABLE>
<TABLE>
<CAPTION>
Class C
--------------------------------
Year Ended March 31,
1997 1996(1)
--------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period ....... $ 7.18 $ 7.09
----------- -----------
Income from investment operations:
Net investment income .................... .39 .38
Net realized and unrealized gains
(losses) ................................ (.04) .08
----------- -----------
Total from investment operations .......... .35 .46
----------- -----------
Less distributions from:
Net investment income .................... (.39) (.37)
Net realized gains ....................... (.05) --
----------- -----------
Total distributions ....................... (.44) (.37)
----------- -----------
Net asset value,end of period ............. $ 7.09 $ 7.18
=========== ===========
Total Return(*) ........................... 5.06% 6.62%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ......... $ 138,509 $ 47,685
Ratios to average net assets:
Expenses ................................. 1.14% 1.14%(**)
Net investment income .................... 5.47% 5.55%(**)
Portfolio turnover rate ................... 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
(***)Based on average shares outstanding.
(1)For the period May 1,1995 (effective date) to March 31,1996.
See notes to financial statements.
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS 99.1%
BONDS 89.8%
ABAG Finance Authority for Nonprofit Corps. COP,
6.75%, 8/01/20 ....................................................................... $ 3,955,000 $ 4,272,191
6.125%, 3/01/21 ...................................................................... 4,245,000 4,324,169
Butte Valley-Tulelake Rural Health, 6.65%, 10/01/22 .................................. 5,395,000 5,595,856
Episcopal Home Foundation, Refunding, 5.125%, 7/01/13 ................................ 6,000,000 5,723,280
Episcopal Home Foundation, Refunding, 5.125%, 7/01/18 ................................ 16,975,000 15,439,951
Home for Jewish Parents, Insured, 5.625%, 5/15/22 .................................... 5,000,000 4,823,150
MFHR, Palo Alto Gardens Apartments, Series A, 5.45%, 4/01/39 ......................... 5,500,000 5,044,600
Milestones Human Services Inc., Insured, 5.65%, 7/01/22 .............................. 2,000,000 1,935,200
Miramonte Mental Health Services, Insured, 6.60%, 7/01/22 ............................ 1,250,000 1,317,050
Peninsula Family YMCA, Series A, Pre-Refunded, 6.80%, 10/01/11 ....................... 2,325,000 2,496,818
Rehabilitation Mental Health Services Inc. Project, Insured, 6.50%, 6/01/12 .......... 2,000,000 2,113,280
Rehabilitation Mental Health Services Inc. Project, Insured, 6.55%, 6/01/22 .......... 2,370,000 2,491,984
Rhoda Haas Goldman Plaza, Insured, 5.125%, 5/15/23 ................................... 5,000,000 4,497,550
United Way of Santa Clara County Project, 7.20%, 7/01/11 ............................. 2,445,000 2,570,575
ABAG Finance Corp. COP, ABAG XXV, 6.80%, 8/01/12 ......................................... 4,500,000 4,630,905
ABAG Revenue,
Mello-Roos, Refunding and Improvement, Series A, FSA Insured, 5.125%, 9/01/21 ........ 4,760,000 4,425,372
Mello-Roos, Refunding and Improvement, Series A, FSA Insured, 5.20%, 9/01/27 ......... 4,140,000 3,852,270
Tax Allocation, RDA Pool, Series A, FSA Insured, 6.00%, 12/15/24 ..................... 6,000,000 6,147,060
Tax Allocation, RDA Pool, Series A4, FSA Insured, 5.875%, 12/15/25 ................... 6,320,000 6,406,205
Tax Allocation, RDA Pool, Series A6, FSA Insured, 5.25%, 12/15/17 .................... 1,200,000 1,160,328
Tax Allocation, RDA Pool, Series A6, FSA Insured, 5.375%, 12/15/25 ................... 3,670,000 3,513,218
ABAG Water and Wastewater Revenue, Pooled Financing Program, Series A, FSA
Insured, 5.30%, 10/01/21 ............................................................... 5,450,000 5,218,103
Adelanto Improvement Agency Tax Allocation,
Adelanto Improvement Project, Series 1990, Pre-Refunded, 8.00%, 8/01/20 .............. 12,630,000 13,151,619
Adelanto Improvement Project, Series 1990, Pre-Refunded, 8.25%, 8/01/20 .............. 1,855,000 2,022,080
Refunding, Series 1985, ETM, 8.125%, 6/01/15 ......................................... 7,155,000 7,368,505
Agua Mansa Industrial Growth Association Special Tax, CFD No. 8, 8.25%, 9/01/17 .......... 15,930,000 16,490,099
Alameda-Contra Costa Transit COP, Refunding, 7.60%, 8/01/18 .............................. 23,675,000 24,294,338
Alameda County COP,
Alameda County Medical Center Project, MBIA Insured, 5.375%, 6/01/16 ................. 4,175,000 4,095,926
Alameda County Medical Center Project, MBIA Insured, 5.375%, 6/01/17 ................. 4,400,000 4,294,356
Alameda County Medical Center Project, MBIA Insured, 5.00%, 6/01/23 .................. 19,195,000 17,253,426
Alameda County Medical Center Project, MBIA Insured, 5.30%, 6/01/26 .................. 7,000,000 6,572,510
Alameda County Medical Center Project, MBIA Insured, 5.00%, 6/01/28 .................. 8,925,000 7,909,781
Capital Projects, Series 1992, Pre-Refunded, 6.75%, 6/01/16 .......................... 10,500,000 11,400,585
MBIA Insured, 5.75%, 12/01/21 ........................................................ 3,720,000 3,748,644
Alhambra RDA, Tax Allocation, Industrial Redevelopment Project, Refunding,
6.375%, 5/01/23 ........................................................................ 2,560,000 2,591,642
Alvord USD,
Series A, FGIC Insured, 5.375%, 8/01/27 .............................................. 6,100,000 5,824,463
Series B, FGIC Insured, 5.50%, 8/01/27 ............................................... 5,000,000 4,860,850
Anaheim PFA Lease Revenue, Public Improvements Project, Series A, FSA Insured,
5.00%,
9/01/27 .............................................................................. 8,900,000 7,954,642
3/01/37 .............................................................................. 146,010,000 128,436,236
Anaheim PFA Revenue, Electric Utilities, San Juan 4, Second Series, FGIC
Insured, 5.75%, 10/01/22 ............................................................... 24,940,000 25,044,499
Antioch Area Public Facilities Financing Agency Special Tax, CFD No. 1989-1,
MBIA Insured, 5.50%, 8/01/22 ........................................................... 4,870,000 4,740,020
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Antioch Development Agency Tax Allocation, Project 1, Refunding, FGIC Insured,
6.40%, 9/01/17 ......................................................................... $ 4,895,000 $ 5,170,931
Antioch PFA, Reassessment Revenue, sub. lien,
Refunding, 5.60%, 9/02/09 ............................................................ 1,295,000 1,293,951
Refunding, Series B, 5.50%, 9/02/08 .................................................. 1,230,000 1,229,078
Series B, 5.10%, 9/02/04 ............................................................. 1,995,000 1,994,042
Series B, 5.30%, 9/02/06 ............................................................. 2,205,000 2,203,633
Apple Valley Insured Health Facilities Revenue COP, 7.30%, 6/01/20 ....................... 3,500,000 3,624,040
Arcadia Hospital Revenue, Methodist Hospital of Southern California,
6.50%, 11/15/12 ...................................................................... 2,295,000 2,408,511
6.625%, 11/15/22 ..................................................................... 3,750,000 3,956,475
Azusa PFA Revenue,
Local Agency, Series A, Pre-Refunded, 7.75%, 8/01/20 ................................. 10,225,000 10,779,093
Water Systems Acquisition Project, Refunding, Series A, FGIC Insured, 5.50%,
7/01/20 ............................................................................ 5,200,000 5,123,664
Bakersfield COP, Convention Center Expansion Project, Refunding, MBIA Insured,
5.875%, 4/01/22 ........................................................................ 7,270,000 7,398,679
Bakersfield Hospital Revenue,
Adventist Health Systems West, Refunding, MBIA Insured, 5.50%, 3/01/19 ............... 6,085,000 5,977,904
Bakersfield Memorial Hospital, Series A, Pre-Refunded, 6.375%, 1/01/12 ............... 2,205,000 2,354,808
Bakersfield Memorial Hospital, Series A, Pre-Refunded, 6.50%, 1/01/22 ................ 2,750,000 2,944,123
Bakersfield PFA Revenue, Series A, 6.10%, 9/15/10 ........................................ 11,070,000 11,504,165
Baldwin Park PFA Revenue, Tax Allocation,
Refunding, Series A, 7.10%, 9/01/24 .................................................. 2,000,000 2,129,100
Series A, 7.75%, 8/01/19 ............................................................. 5,265,000 5,417,738
Series B, 7.75%, 8/01/21 ............................................................. 5,795,000 5,952,972
Belmont RDA, Tax Allocation, Los Costanos Community Development, Series A,
6.70%, 8/01/14 ....................................................................... 1,235,000 1,331,182
6.25%, 8/01/17 ....................................................................... 2,080,000 2,151,718
6.80%, 8/01/23 ....................................................................... 2,310,000 2,484,266
Belmont - Redwood Shores School District, Series A, 5.50%, 9/01/22 ....................... 6,500,000 6,367,010
Berkeley Hospital Revenue, Alta Bates Hospital,
Series B, Pre-Refunded, 7.65%, 12/01/15 .............................................. 6,135,000 6,355,492
Series C, Pre-Refunded, 7.60%, 12/01/15 .............................................. 2,850,000 3,000,993
Brea and Olinda USD, COP, High School Refinancing Program, Refunding,
Series A, FSA Insured, 6.25%, 8/01/18 ................................................ 12,645,000 13,289,895
Series B, 7.00%, 8/01/18 ............................................................. 9,120,000 9,663,278
Brea PFA Revenue, Tax Allocation, Redevelopment Project, Series A, MBIA Insured,
7.00%, 8/01/15 ....................................................................... 1,720,000 1,824,438
6.75%, 8/01/22 ....................................................................... 4,395,000 4,634,132
7.00%, 8/01/23 ....................................................................... 6,150,000 6,510,083
Brea PFA Water Revenue, Series B, FGIC Insured, Pre-Refunded, 6.25%, 7/01/21 ............. 11,070,000 11,398,779
Brea RDA, Tax Allocation, Redevelopment Project, Refunding, MBIA Insured,
6.125%, 8/01/13 ...................................................................... 12,845,000 13,549,163
5.75%, 8/01/23 ....................................................................... 18,320,000 18,390,166
Brentwood 1915 Act, Infrastructure Financing, Reassessment, Series A, FSA
Insured, 5.80%, 9/02/17 ................................................................ 5,300,000 5,419,144
Brentwood RDA, Tax Allocation, Brentwood Redevelopment Project, Series A, 7.70%,
11/01/08 ............................................................................... 2,000,000 2,063,440
Brisbane PFA Revenue, 8.00%, 9/02/15 ..................................................... 5,700,000 5,904,459
Buena Park CRDA, Tax Allocation, Central Business District Project, Refunding,
Series A, 7.10%, 9/01/14 ............................................................... 7,000,000 7,388,990
Burbank Parking Authority, Special Tax, CFD No. 1, 8.375%, 10/01/06 ...................... 1,375,000 1,419,083
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Burbank RDA, Tax Allocation,
City Center Redevelopment Project, Refunding, Series A, FSA Insured, 5.50%,
12/01/23 .......................................................................... $ 5,000,000 $ 4,888,500
Refunding, Series A, 6.00%, 12/01/23 ................................................. 6,500,000 6,491,160
Burton Elementary School District COP, Loan Acquisition, Capital Appreciation,
Series A, FSA Insured, 6.60%, 9/01/27 .................................................. 820,000 868,085
Calexico CRDA Revenue, Tax Allocation, Merged Central Business and Residential,
Refunding, FSA Insured, 5.80%, 8/01/24 ................................................. 5,840,000 5,888,180
California Counties Lease Financing Authority COP, CSAC Financing Corp., Amador
County Project, ETM, 7.70%, 10/01/09 ................................................... 2,565,000 2,971,758
California Educational Facilities Authority Revenue,
Chapman College, 7.30%, 1/01/02 ........................................................ 700,000 736,540
Chapman College, Pre-Refunded, 7.30%, 1/01/02 ........................................ 385,000 408,085
Chapman College, Pre-Refunded, 7.50%, 1/01/18 ........................................ 3,000,000 3,188,970
Chapman University, Refunding, Connie Lee Insured, 5.125%, 10/01/26 .................. 10,000,000 9,148,300
Loyola Marymount University, Series B, Pre-Refunded, 6.60%, 10/01/22 ................. 1,100,000 1,198,384
Occidental College, Refunding, MBIA Insured, 5.625%, 10/01/17 ........................ 5,815,000 5,852,507
Occidental College, Refunding, MBIA Insured, 5.70%, 10/01/27 ......................... 16,565,000 16,564,834
Santa Clara University, MBIA Insured, Pre-Refunded, 5.75%, 9/01/26 ................... 20,500,000 22,396,865
Santa Clara University, Refunding, MBIA Insured, 5.75%, 9/01/21 ...................... 3,495,000 3,521,422
Santa Clara University, Refunding, MBIA Insured, 5.75%, 9/01/26 ...................... 6,315,000 6,336,408
St. Mary's College of California Project, Pre-Refunded, 7.50%, 10/01/20 .............. 2,100,000 2,223,228
Stanford University, Refunding, Series O, 5.125%, 1/01/31 ............................ 21,250,000 19,360,025
Student Loan Program, Series A, MBIA Insured, 6.00%, 3/01/16 ......................... 6,000,000 6,111,780
California Health Facilities Financing Authority Revenue,
Adventist Health Systems West, Series B, MBIA Insured, 6.25%, 3/01/21 ................ 2,930,000 3,036,066
AIDS Health Care Foundation, Refunding, Series C, California Mortgage
Insured, 6.25%, 9/01/17 ............................................................ 1,750,000 1,821,645
AIDS Hospice Foundation, CHFCLP Insured, Pre-Refunded, 7.15%, 1/01/15 ................ 830,000 853,680
Association for Retarded Citizens of San Diego, CHFCLP Insured,
Pre-Refunded, 7.00%, 5/01/21 ....................................................... 3,650,000 3,826,989
California Autism Foundation Inc., Series A, CHFCLP Insured, 6.25%, 11/01/20 ......... 3,560,000 3,678,121
Catholic Healthcare West, Refunding, Series A, MBIA Insured, 5.75%, 7/01/15 .......... 13,000,000 13,241,280
Catholic Healthcare West, Refunding, Series A, MBIA Insured, 6.00%, 7/01/25 .......... 1,000,000 1,024,470
Catholic Healthcare West, Series A, 5.00%, 7/01/18 ................................... 40,000,000 33,397,200
Catholic Healthcare West, Series A, 5.00%, 7/01/28 ................................... 140,630,000 111,047,073
Catholic Healthcare West, Series A, MBIA Insured, 5.00%, 7/01/17 ..................... 5,000,000 4,633,150
Catholic Healthcare West, Series A, MBIA Insured, 5.125%, 7/01/24 .................... 11,500,000 10,513,990
Catholic Healthcare West, Series A, Refunding, MBIA Insured, 6.00%, 7/01/17 .......... 7,300,000 7,554,989
Cedarknoll Inc., Series B, California Mortgage Insured, Pre-Refunded, 7.50%,
8/01/20 ............................................................................ 1,575,000 1,655,861
Cedars-Sinai Medical Center, Series A, MBIA Insured, 5.125%, 8/01/17 ................. 8,355,000 7,919,454
Cedars-Sinai Medical Center, Series A, MBIA Insured, 5.125%, 8/01/27 ................. 15,600,000 14,153,100
Cedars-Sinai Medical Center, Series B, MBIA Insured, 5.125%, 8/01/17 ................. 6,105,000 5,786,746
Cedars-Sinai Medical Center, Series B, MBIA Insured, 5.25%, 8/01/27 .................. 52,500,000 48,873,300
Clinicas Del Camino, Series A, CHFCLP Insured, 6.55%, 5/01/25 ........................ 4,500,000 4,749,300
Community Provider, Pooled Loan Program, Series A, Pre-Refunded, 7.35%,
6/01/20 ............................................................................ 730,000 762,427
County Program, Series B, 7.20%, 1/01/12 ............................................. 2,405,000 2,418,564
El Proyecto, Series A, CHFCLP Insured, 5.50%, 12/01/22 ............................... 3,350,000 3,197,944
Enloe Health System, Series A, FSA Insured, 5.00%, 11/15/18 .......................... 5,000,000 4,595,400
Enloe Health System, Series A, FSA Insured, 5.00%, 11/15/28 .......................... 25,390,000 22,484,622
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
California Health Facilities Financing Authority Revenue, (cont.)
Feedback Foundation Inc., Series A, CHFCLP Insured, 6.50%, 12/01/22 .................. $ 4,240,000 $ 4,456,325
Hospital of the Good Samaritan, Refunding, 6.90%, 9/01/07 ............................ 13,920,000 14,561,990
Hospital of the Good Samaritan, Refunding, 7.00%, 9/01/21 ............................ 71,050,000 74,176,911
Kaiser Permanente, Series A, 5.40%, 5/01/28 .......................................... 46,000,000 41,839,760
Kaiser Permanente, Series A, FSA Insured, 5.00%, 6/01/20 ............................. 32,295,000 29,422,683
Kaiser Permanente, Series A, FSA Insured, 5.00%, 6/01/24 ............................. 136,775,000 122,506,632
Kaiser Permanente, Series A, Pre-Refunded, 7.00%, 10/01/18 ........................... 5,000,000 5,100,000
Kaiser Permanente, Series A, Pre-Refunded, 6.75%, 10/01/19 ........................... 8,870,000 9,047,400
Kaiser Permanente, Series A, Pre-Refunded, 6.50%, 12/01/20 ........................... 11,000,000 11,572,220
Kaiser Permanente, Series B, 5.25%, 10/01/16 ......................................... 7,515,000 7,041,254
Kaiser Permanente, Series B, 5.00%, 10/01/18 ......................................... 16,425,000 14,595,255
Kaiser Permanente, Series B, 5.00%, 10/01/20 ......................................... 36,520,000 32,034,979
Kaiser Permanente, Series B, 5.40%, 5/01/28 .......................................... 80,000,000 72,764,800
Lodi Memorial Hospital Association, Series A, CHFCLP Insured, 7.70%, 9/01/10 ......... 4,000,000 4,187,080
Marshall Hospital, Insured, Series A, 5.30%, 11/01/28 ................................ 5,500,000 5,079,360
Marshall Hospital, Series A, CHFCLP Insured, Pre-Refunded, 6.625%, 11/01/22 .......... 3,900,000 4,258,566
Mills-Peninsula Health, Refunding, Series A, Connie Lee Insured, 5.75%, 1/15/15 ...... 11,500,000 11,703,895
Mills-Peninsula Health, Series B, Connie Lee Insured, 5.75%, 1/15/15 ................. 5,665,000 5,765,440
Northern California Presbyterian, 5.40%, 7/01/28 ..................................... 6,340,000 5,789,054
On Lok Senior Health Services, Series A, CHFCLP Insured, 6.40%, 12/01/12 ............. 2,000,000 2,120,300
On Lok Senior Health Services, Series A, CHFCLP Insured, 6.50%, 12/01/22 ............. 7,525,000 7,908,926
Pomona Valley Hospital Medical Center, Pre-Refunded, 7.375%, 1/01/14 ................. 4,000,000 4,116,200
Pomona Valley Hospital, Refunding, Series A, MBIA Insured, 5.75%, 7/01/15 ............ 4,200,000 4,278,288
Pomona Valley Hospital, Refunding, Series A, MBIA Insured, 5.625%, 7/01/19 ........... 8,500,000 8,474,075
San Diego Hospital Association, Refunding, Series A, MBIA Insured, 6.20%, 8/01/20 .... 8,250,000 8,645,918
San Diego Hospital Association, Series A, Pre-Refunded, 6.95%, 10/01/21 .............. 21,145,000 22,767,667
Scripps Memorial Hospital, Series A, MBIA Insured, 6.375%, 10/01/22 .................. 9,725,000 10,229,241
Small Facilities Loan, Health Facilities, Refunding, Series B, Insured,
7.50%, 4/01/22 .................................................................... 5,000,000 5,590,450
Small Facilities Loan, Health Facilities, Series A, CHFCLP Insured, 6.75%,
3/01/20 ........................................................................... 5,500,000 5,803,985
South Coast Medical Center, CHFCLP Insured, Pre-Refunded, 7.25%, 7/01/15 ............. 3,000,000 3,139,140
Southern California, Series A, CHFCLP Insured, 5.50%, 12/01/22 ....................... 3,070,000 2,930,653
St. Francis Medical Center, Refunding, Series H, AMBAC Insured, 6.35%, 10/01/23 ...... 7,000,000 7,464,240
St. Paul's Episcopal Home, CHFCLP Insured, 6.50%, 9/01/14 ............................ 2,595,000 2,721,013
Sutter Health, Refunding, Series A, MBIA Insured, 5.875%, 8/15/16 .................... 5,750,000 5,919,510
Sutter Health, Series A, FSA Insured, 5.125%, 8/15/17 ................................ 1,000,000 947,820
Sutter Health, Series A, FSA Insured, 5.25%, 8/15/27 ................................. 5,300,000 4,933,717
Sutter Health, Series A, FSA Insured, 5.00%, 8/15/37 ................................. 61,000,000 53,213,960
Sutter Health, Series A, MBIA Insured, 5.00%, 8/15/38 ................................ 25,860,000 22,535,697
The Help Group, CHFCLP Insured, 5.40%, 8/01/22 ....................................... 7,420,000 7,010,564
UCSF-Stanford Health Care, Refunding, Series B, 5.00%, 11/15/31 ...................... 26,920,000 23,655,950
UCSF-Stanford Health Care, Refunding, Series B, AMBAC Insured, 5.00%, 11/15/28 ....... 30,000,000 26,567,100
UCSF-Stanford Health Care, Series A, Refunding, FSA Insured, 5.00%, 11/15/31 ......... 2,150,000 1,889,313
Valleycare Hospital Corp., Refunding, 5.50%, 5/01/20 ................................. 11,640,000 11,196,050
Walden House, State Guaranteed, 6.85%, 3/01/22 ....................................... 3,225,000 3,399,924
California HFA, SFM Purchase,
Class I, Series A-1, 6.05%, 8/01/26 .................................................. 13,935,000 14,071,842
Refunding, Series A-2, FHA Insured, 6.45%, 8/01/25 ................................... 10,245,000 10,527,967
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
California HFAR,
Home Mortgage, Series A, 6.55%, 8/01/26 .............................................. $ 6,975,000 $ 7,233,773
Home Mortgage, Series A, 7.70%, 8/01/30 .............................................. 10,205,000 10,424,305
Home Mortgage, Series C, 7.60%, 8/01/30 .............................................. 27,600,000 28,150,896
Home Mortgage, Series D, 7.75%, 8/01/10 .............................................. 1,235,000 1,267,925
Home Mortgage, Series D, MBIA Insured, 6.15%, 8/01/28 ................................ 5,250,000 5,330,640
Home Mortgage, Series E, 6.70%, 8/01/25 .............................................. 6,620,000 6,866,794
Home Mortgage, Series E, 6.375%, 8/01/27 ............................................. 14,090,000 14,475,502
Home Mortgage, Series E, AMBAC Insured, 6.10%, 8/01/29 ............................... 22,275,000 22,568,139
Home Mortgage, Series E, MBIA Insured, 6.15%, 8/01/25 ................................ 17,500,000 17,748,325
Home Mortgage, Series F, 6.75%, 8/01/11 .............................................. 865,000 900,309
Home Mortgage, Series F-1, 6.875%, 8/01/15 ........................................... 3,350,000 3,497,099
Home Mortgage, Series F-1, 7.00%, 8/01/26 ............................................ 12,010,000 12,403,328
Home Mortgage, Series G, 7.55%, 8/01/23 .............................................. 4,675,000 4,775,185
Home Mortgage, Series G, 7.05%, 8/01/27 .............................................. 3,135,000 3,229,426
Home Mortgage, Series H, 6.25%, 8/01/27 .............................................. 19,540,000 19,949,363
Home Mortgage, Series I, MBIA Insured, 5.75%, 2/01/29 ................................ 8,100,000 7,952,904
Home Mortgage, Series J, MBIA Insured, 5.45%, 8/01/16 ................................ 5,000,000 4,844,450
Home Mortgage, Series J, MBIA Insured, 5.40%, 8/01/28 ................................ 6,345,000 5,915,634
Home Mortgage, Series J, MBIA Insured, 5.55%, 8/01/28 ................................ 10,000,000 9,477,200
Home Mortgage, Series M, MBIA Insured, 5.60%, 8/01/29 ................................ 21,150,000 20,148,759
Home Mortgage, Series N, 6.375%, 2/01/27 ............................................. 7,180,000 7,381,399
Home Mortgage, Series N, FSA Insured, 5.15%, 8/01/18 ................................. 6,000,000 5,556,300
Home Mortgage, Series Q, MBIA Insured, 5.85%, 8/01/16 ................................ 5,000,000 5,093,000
Home Mortgage, Series R, MBIA Insured, 6.15%, 8/01/27 ................................ 9,000,000 9,144,900
Home Mortgage, SF, Series A, 10.25%, 2/01/14 ......................................... 465,000 465,251
Home Mortgage, SF, Series B, 10.625%, 2/01/14 ........................................ 170,000 170,112
Housing Revenue, Series E, MBIA Insured, 6.625%, 8/01/14 ............................. 4,365,000 4,579,540
Housing Revenue, Series E, MBIA Insured, 6.75%, 8/01/26 .............................. 11,855,000 12,402,820
Housing Revenue, Series F, MBIA Insured, 6.90%, 8/01/26 .............................. 11,345,000 11,907,372
MFHR II, Series A, AMBAC Insured, 6.25%, 2/01/37 ..................................... 5,000,000 5,143,050
MFHR III, Series B, MBIA Insured, 5.50%, 8/01/39 ..................................... 15,000,000 14,038,650
Multi-Unit Rental Housing, Series A, 6.875%, 2/01/22 ................................. 2,465,000 2,466,799
Series B, MBIA Insured, 8.625%, 8/01/15 .............................................. 1,975,000 2,001,050
Series B-1, Class 1, 5.65%, 8/01/28 .................................................. 13,190,000 12,663,983
SFM, Series C-2, Class 1, FHA Insured, 5.65%, 2/01/25 ................................ 13,845,000 13,373,993
SFM, Series C-4, Class 1, FHA Insured, 5.65%, 8/01/16 ................................ 4,745,000 4,772,996
California Mobilehome Park Financing Authority Revenue, Series A, FSA Insured,
4.50%, 10/01/99 ...................................................................... 70,000 70,000
4.65%, 10/01/00 ...................................................................... 55,000 55,370
4.80%, 10/01/01 ...................................................................... 60,000 60,668
4.95%, 10/01/02 ...................................................................... 65,000 66,210
5.05%, 10/01/03 ...................................................................... 65,000 66,268
5.15%, 10/01/04 ...................................................................... 70,000 71,418
5.25%, 10/01/05 ...................................................................... 70,000 71,404
6.25%, 10/01/25 ...................................................................... 2,875,000 2,914,618
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
California PCFA,
PCR, PG&E Co., Series A, 6.625%, 6/01/09 ............................................. $ 1,750,000 $ 1,848,210
PCR, Southern California Edison Co., Refunding, 6.90%, 12/01/17 ...................... 2,510,000 2,662,884
PCR, Southern California Edison Co., Series B, 6.40%, 12/01/24 ....................... 29,000,000 30,831,930
PCR, Southern California Edison Co., Series B, MBIA Insured, 6.40%, 12/01/24 ......... 12,120,000 12,808,780
Solid Waste Disposal Revenue, Keller Canyon Landfill Co. Project, 6.875%,
11/01/27 ............................................................................... 17,205,000 17,568,026
California Public Capital Improvement Financing Authority Revenue, Pooled
Projects,
Joint Powers Agency, Series E, 8.375%, 3/01/03 ....................................... 16,970,000 17,084,208
Series A, 8.40%, 3/01/08 ............................................................. 52,375,000 53,603,194
Series A, 8.50%, 3/01/18 ............................................................. 121,300,000 124,201,496
California Resources Efficiency Financing Authority COP, Capital Improvement
Program, Refunding, AMBAC Insured,
5.625%, 4/01/22 ...................................................................... 10,365,000 10,319,083
5.75%, 4/01/27 ....................................................................... 7,885,000 7,913,544
California Rural Home Mortgage Finance Authority SFMR, GNMA Secured, FNMA
Insured, 7.00%, 9/01/29 ................................................................ 4,715,000 5,040,038
California Special Districts Association Finance Corp. COP, Series F, 8.10%,
9/01/10 ................................................................................ 150,000 153,020
California Special Districts Lease Financing Program COP,
Series C, 7.90%, 4/01/14 ............................................................. 135,000 137,269
Series E, 7.70%, 12/01/09 ............................................................ 205,000 207,741
Series E, 7.75%, 12/01/19 ............................................................ 305,000 309,020
California State Department of Transportation COP, East Bay State Building,
Series A, Pre-Refunded, 6.50%, 3/01/16 ................................................. 2,000,000 2,108,820
California State Department of Veteran Affairs Home Purchase Revenue,
Refunding, Series A, 5.40%, 12/01/28 ................................................. 9,580,000 9,238,856
Refunding, Series B, 5.50%, 12/01/18 ................................................. 2,500,000 2,430,625
Series A, Chase Revenue, Series A, 5.20%, 12/01/27 ................................... 33,000,000 30,916,710
Series B, 5.20%, 12/01/28 ............................................................ 63,875,000 59,184,659
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 17,183,160
Series J-1, 6.00%, 12/01/20 .......................................................... 9,580,000 9,738,549
Series J-2, 6.00%, 12/01/20 .......................................................... 22,865,000 23,243,416
Series J-3, 6.00%, 12/01/20 .......................................................... 18,945,000 19,258,540
Series L, 5.75%, 12/01/19 ............................................................ 22,240,000 22,373,218
Series L, 5.50%, 12/01/23 ............................................................ 52,395,000 51,226,592
Series L, 5.875%, 12/01/25 ........................................................... 40,070,000 40,447,459
Series O, 5.00%, 12/01/22 ............................................................ 5,500,000 4,988,280
Series O, 4.75%, 12/01/25 ............................................................ 16,000,000 13,694,240
Series O, MBIA Insured, 4.75%, 12/01/29 .............................................. 8,000,000 6,769,440
Series S, 5.00%, 12/01/29 ............................................................ 24,595,000 21,901,356
Series U, 5.00%, 12/01/29 ............................................................ 56,975,000 50,735,098
California State GO,
5.75%, 3/01/19 ....................................................................... 700,000 706,251
5.25%, 10/01/20 ...................................................................... 11,170,000 10,664,334
5.75%, 3/01/23 ....................................................................... 645,000 647,703
5.90%, 4/01/23 ....................................................................... 3,300,000 3,358,674
6.00%, 3/01/24 ....................................................................... 570,000 584,250
6.00%, 5/01/24 ....................................................................... 2,565,000 2,630,561
5.00%, 10/01/27 ...................................................................... 2,110,000 1,885,707
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
California State GO, (cont.)
5.125%, 10/01/27 ..................................................................... $ 39,835,000 $ 36,390,866
AMBAC Insured, 5.90%, 3/01/25 ........................................................ 210,000 213,891
AMBAC Insured, 5.125%, 10/01/27 ...................................................... 31,420,000 28,703,427
AMBAC Insured, Pre-Refunded, 5.90%, 3/01/25 .......................................... 10,000,000 10,828,300
FGIC Insured, 5.75%, 11/01/17 ........................................................ 2,100,000 2,119,173
FGIC Insured, 6.00%, 8/01/19 ......................................................... 905,000 930,367
FGIC Insured, 5.625%, 10/01/21 ....................................................... 10,000,000 9,981,100
FGIC Insured, 5.625%, 10/01/26 ....................................................... 52,500,000 51,960,300
FGIC Insured, Pre-Refunded, 6.00%, 8/01/19 ........................................... 2,000,000 2,187,360
FSA Insured, 5.50%, 3/01/20 .......................................................... 5,500,000 5,420,140
(a)FSA Insured, 5.50%, 9/01/29 .......................................................... 30,000,000 29,141,700
MBIA Insured, 6.00%, 10/01/21 ........................................................ 160,000 163,168
(a)MBIA Insured, 5.00%, 8/01/24 ......................................................... 7,500,000 6,760,650
MBIA Insured, 6.00%, 8/01/24 ......................................................... 990,000 1,013,235
MBIA Insured, Pre-Refunded, 6.00%, 8/01/24 ........................................... 17,500,000 19,139,400
Pre-Refunded, 6.00%, 3/01/24 ......................................................... 5,430,000 5,907,297
Pre-Refunded, 6.00%, 5/01/24 ......................................................... 6,725,000 7,331,864
Refunding, 5.625%, 9/01/24 ........................................................... 10,650,000 10,571,829
Refunding, FGIC Insured, 5.375%, 6/01/26 ............................................. 7,500,000 7,167,375
Series BR, 5.25%, 12/01/26 ........................................................... 5,000,000 4,600,250
Series BR, 5.30%, 12/01/29 ........................................................... 13,000,000 11,922,950
Various Purposes, 5.50%, 4/01/15 ..................................................... 21,920,000 21,971,293
Various Purposes, FSA Insured, 5.50%, 4/01/19 ........................................ 6,500,000 6,423,430
Veterans Bonds, Series BD, BE, and BF, 6.40%, 2/01/22 ................................ 29,000,000 29,151,670
Veterans Bonds, Series BD, BE, and BF, 6.55%, 2/01/25 ................................ 10,570,000 10,629,192
Veterans Bonds, Series BD, BE, and BF, AMBAC Insured, 6.20%, 2/01/16 ................. 11,500,000 11,553,245
Veterans Bonds, Series BD, BE, and BF, AMBAC Insured, 6.375%, 2/01/27 ................ 45,000,000 45,225,900
Veterans Bonds, Series BH, 5.50%, 12/01/18 ........................................... 44,250,000 43,072,065
Veterans Bonds, Series BH, 5.60%, 12/01/32 ........................................... 44,235,000 42,557,609
Veterans Bonds, Series BH, FSA Insured, 5.40%, 12/01/16 .............................. 3,250,000 3,157,765
Veterans Bonds, Series BH, FSA Insured, 5.50%, 12/01/24 .............................. 22,265,000 21,187,151
Veterans Bonds, Series BM, 5.45%, 12/01/25 ........................................... 36,635,000 35,783,969
Veterans Bonds, Series BN, 5.375%, 12/01/21 .......................................... 24,870,000 24,317,140
Veterans Bonds, Series BN, 5.45%, 12/01/28 ........................................... 21,575,000 20,900,134
California State HFA Revenue, Home Mortgage, Series L, MBIA Insured, 6.40%,
8/01/27 ................................................................................ 15,380,000 15,858,779
California State Local Government Finance Authority Revenue, Marin Valley,
Series A, FSA Insured, 5.85%, 10/01/27 ................................................. 6,735,000 6,836,699
California State Public Works Board Lease Revenue,
California Science Center, Series A, 5.25%, 10/01/22 ................................. 8,645,000 8,086,965
California State University, Various Projects, Series A, 6.30%, 10/01/04 ............. 5,250,000 5,635,560
California State University, Various Projects, Series A, Pre-Refunded,
6.375%, 10/01/05 ....................................................................... 6,815,000 7,371,649
California State University, Various Projects, Series A, Pre-Refunded,
6.50%, 10/01/06 ........................................................................ 10,695,000 11,605,893
Department of Corrections, California State Prison at Coalinga, Series B,
MBIA Insured, 5.375%, 12/01/19 ......................................................... 15,250,000 14,837,335
Department of Corrections, Corcoran II Facility, Series A, AMBAC Insured,
5.25%, 1/01/21 ......................................................................... 17,405,000 16,569,212
Department of Justice Building, Series A, FSA Insured, 5.625%, 5/01/20 ............... 5,000,000 5,001,300
Department of Justice Building, Series A, FSA Insured, Pre-Refunded, 5.80%,
5/01/15 ................................................................................ 5,500,000 5,939,615
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
California State Public Works Board Lease Revenue, (cont.)
Southern California Veterans Home, Series A, Pre-Refunded, 6.375%, 10/01/08 .......... $ 3,000,000 $ 3,331,080
Southern California Veterans Home, Series A, Pre-Refunded, 6.50%, 10/01/14 ........... 3,750,000 4,184,700
Trustees California State University, Refunding, Series A, 5.00%, 10/01/19 ........... 8,500,000 7,729,475
University of California, Various Projects, Refunding, Series A, 5.50%,
6/01/21 ............................................................................ 14,000,000 13,755,560
University of California, Various Projects, Refunding, Series A, 5.00%,
6/01/23 ............................................................................ 23,175,000 20,968,740
University of California, Various Projects, Series A, Pre-Refunded, 6.375%,
10/01/14 ........................................................................... 11,480,000 12,746,933
University of California, Various Projects, Series A, Pre-Refunded, 6.375%,
11/01/14 ........................................................................... 23,130,000 25,713,158
University of California, Various Projects, Series A, Pre-Refunded, 6.375%,
10/01/19 ........................................................................... 2,150,000 2,387,274
University of California, Various Projects, Series B, 5.50%, 6/01/19 ................. 13,000,000 12,845,170
University of California, Various Projects, Series B, Pre-Refunded, 6.625%,
12/01/14 ........................................................................... 7,415,000 8,337,871
Various California Community Colleges, Refunding, Series A, 5.90%, 4/01/17 ........... 8,320,000 8,507,866
California State University Headquarters Building Authority Lease Revenue,
Series B, MBIA Insured, 5.25%, 9/01/22 ................................................. 6,850,000 6,449,755
California Statewide CDA Revenue COP,
Catholic Healthcare West, MBIA Insured, 5.50%, 7/01/23 ............................... 11,240,000 10,919,885
Cedars-Sinai Medical Center, 6.75%, 8/01/22 .......................................... 6,955,000 7,109,401
CHFCLP Insured, ETM, 5.90%, 8/01/21 .................................................. 4,000,000 4,002,560
CHFCLP Insured, Families First Inc., 7.25%, 12/01/22 ................................. 5,120,000 5,640,499
CHFCLP Insured Health Facilities, AIDS Project, Series A, 6.25%, 8/01/22 ............. 2,590,000 2,675,470
CHFCLP Insured Health Facilities, Children's Campus, 6.375%, 9/01/12 ................. 2,765,000 2,917,462
CHFCLP Insured Health Facilities, Children's Campus, 6.50%, 9/01/22 .................. 3,000,000 3,146,280
CHFCLP Insured Health Facilities, Eskaton Properties, 6.75%, 5/01/21 ................. 9,600,000 10,417,152
CHFCLP Insured Health Facilities, Unihealth, Series A, AMBAC Insured,
Pre-Refunded, 5.75%, 10/01/25 ...................................................... 36,000,000 38,081,160
CHFCLP Insured Hospital, Triad Health Care, Refunding, ETM, 6.25%, 8/01/06 ........... 2,000,000 2,120,320
CHFCLP Insured Hospital, Triad Health Care, Refunding, Pre-Refunded, 6.50%,
8/01/22 ............................................................................ 80,230,000 86,894,706
CHFCLP Insured Retirement Housing Foundation, Refunding, 6.625%, 4/15/12 ............. 7,000,000 7,558,880
CHFCLP Insured Retirement Housing Foundation, Refunding, 6.75%, 4/15/22 .............. 16,000,000 17,325,120
Gemological Institute, Connie Lee Insured, 6.00%, 5/01/15 ............................ 5,365,000 5,557,711
Gemological Institute, Connie Lee Insured, 6.00%, 5/01/20 ............................ 3,775,000 3,873,981
Gemological Institute, Connie Lee Insured, 6.00%, 5/01/25 ............................ 4,755,000 4,859,087
Health Facilities, Barton Memorial Hospital, Refunding, Series B, 6.40%,
12/01/05 ........................................................................... 250,000 262,188
Salk Institute, Connie Lee Insured, 6.20%, 7/01/24 ................................... 7,065,000 7,307,471
Sisters Charity Leavenworth, 5.00%, 12/01/23 ......................................... 11,375,000 10,104,981
Southern California Development Corp., 6.10%, 12/01/15 ............................... 2,255,000 2,342,765
St. Joseph Health System Group, Pre-Refunded, 6.50%, 7/01/15 ......................... 8,395,000 9,350,267
St. Joseph Health System Group, Pre-Refunded, 6.625%, 7/01/21 ........................ 12,500,000 13,988,875
Sutter Health Obligated Group, MBIA Insured, 5.50%, 8/15/22 .......................... 25,520,000 24,838,616
Sutter Health Obligated Group, Refunding, AMBAC Insured, 6.00%, 8/15/09 .............. 6,465,000 6,814,563
Sutter Health Obligated Group, Refunding, AMBAC Insured, 6.125%, 8/15/22 ............. 9,330,000 9,591,053
Sutter Health Obligated Group, Refunding, MBIA Insured, 5.50%, 8/15/23 ............... 14,000,000 13,600,580
California Statewide CDA,
COP, California Lutheran Homes, ETM, 5.75%, 11/15/15 ................................. 5,000,000 5,052,600
COP, Children's Hospital, Los Angeles, 5.25%, 8/15/29 ................................ 37,685,000 34,212,704
COP, Kaiser Permanente, 5.30%, 12/01/15 .............................................. 32,200,000 30,555,868
COP, MBIA Insured, 5.00%, 4/01/18 .................................................... 7,000,000 6,444,410
COP, MBIA Insured, 5.125%, 4/01/23 ................................................... 6,000,000 5,505,540
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
California Statewide CDA, (cont.)
COP, St. Joseph Health System, Refunding, 5.125%, 7/01/17 ............................ $ 5,000,000 $ 4,670,700
COP, St. Joseph Health System, Refunding, 5.25%, 7/01/21 ............................. 16,250,000 15,038,888
COP, The Internext Group, 5.375%, 4/01/17 ............................................ 5,000,000 4,608,400
COP, The Internext Group, 5.375%, 4/01/30 ............................................ 27,680,000 24,534,722
Lease Revenue, Oakland Convention Center Project, Refunding, AMBAC Insured,
5.50%, 10/01/14 .................................................................... 10,000,000 10,035,400
Lease Revenue, Special Facilities, United Airlines, Los Angeles, 5.625%,
10/01/34 ........................................................................... 58,920,000 53,866,432
(a)Lease Revenue, Special Facilities, United Airlines, Series A, 5.70%,
10/01/33 ........................................................................... 19,125,000 17,699,996
MFHR, Borregas Court Project, Series J, GNMA Secured, 6.30%, 3/20/39 ................. 7,476,000 7,680,842
MFHR, Series E, FNMA Insured, 6.40%, 6/01/28 ......................................... 8,000,000 8,229,200
MFHR, Springdale Apartments, Series O, GNMA Secured, 5.50%, 3/20/40 .................. 17,550,000 16,371,167
Water and Wastewater Revenue, Pooled Financing Program, Series A, FSA
Insured, 5.00%, 10/01/25 ........................................................... 2,250,000 2,020,973
Water Revenue, Refunding, Series A, 6.10%, 7/01/21 ................................... 4,615,000 4,719,207
California Statewide Communities Development Corp. COP, Pacific Homes, Series A,
Pre-Refunded, 6.00%, 4/01/17 ........................................................... 6,270,000 6,390,008
California Urban Waterfront Area Restoration, 7.40%, 10/01/20 ............................ 2,575,000 2,660,825
California Valley HFAR, Home Mortgage, MBIA Insured, 5.65%, 2/01/27 ...................... 20,000,000 19,219,000
Camarillo COP, Capital Improvement Corp., ETM, 7.625%, 4/01/08 ........................... 4,150,000 4,262,382
Campbell COP, Civic Center Project, Refunding, Series 1991, Pre-Refunded, 6.75%,
10/01/17 ............................................................................... 1,410,000 1,512,860
Campbell Housing Facility Revenue, San Tomas Gardens Project, Series A, 6.625%,
10/20/34 ............................................................................... 5,615,000 5,784,068
Campbell USD, Series A, MBIA Insured, Pre-Refunded, 6.25%, 8/01/19 ....................... 3,250,000 3,589,560
Camrosa Water District COP, Water System Improvement Projects, MBIA Insured,
6.00%, 1/15/20 ......................................................................... 5,120,000 5,265,152
Capistrano Bay Park and Recreation District COP, Special Lease Finance, Series
Q, 6.35%, 8/01/12 ...................................................................... 2,800,000 2,867,424
Capistrano Unified PFA, Special Tax Revenue, First Lien, Refunding, Series A,
AMBAC Insured, 5.70%, 9/01/20 .......................................................... 10,640,000 10,698,414
Carson RDA, Project Area No. 1, Refunding, Series 1992, 6.375%,
10/01/12 ............................................................................. 3,965,000 4,157,065
10/01/16 ............................................................................. 1,565,000 1,628,868
Castaic Lake Water Agency COP, Water System Improvement Project, Refunding,
Series A, MBIA Insured,
6.125%, 8/01/15 ...................................................................... 11,540,000 12,078,110
6.00%, 8/01/18 ....................................................................... 5,345,000 5,500,967
Cathedral City PFA Revenue, Tax Allocation, Redevelopment Projects, Refunding,
Series A, MBIA Insured, 5.70%, 8/01/24 ................................................. 11,210,000 11,223,004
Central San Joaquin Water Conservation District COP, Series 1990, Pre-Refunded,
7.65%, 12/01/18 ........................................................................ 4,630,000 4,974,981
Cerritos PFA Revenue, Los Coyotes Redevelopment Project Loan, Series A, AMBAC
Insured, 5.75%, 11/01/22 ............................................................... 5,500,000 5,524,860
Chaffey Community College District COP, 7.40%, 11/01/14 .................................. 5,000,000 5,789,950
Chico PFA Revenue, Southeast Chico Redevelopment Project, Series A, FGIC
Insured, 6.625%, 4/01/21 ............................................................... 1,955,000 2,013,200
Chico RDAR, COP, Insured Health Facilities, Sierra Sunrise Lodge,
6.80%, 2/01/11 ....................................................................... 4,110,000 4,295,813
6.75%, 2/01/21 ....................................................................... 2,800,000 2,910,852
Chino RDA, Tax Allocation, Central City Redevelopment Project, 7.00%, 9/01/22 ............ 9,980,000 10,624,209
Chino USD, COP, Land Acquisition,
Series A, FSA Insured, 6.60%, 9/01/14 ................................................ 1,265,000 1,302,128
Series A, FSA Insured, 6.70%, 9/01/29 ................................................ 7,105,000 7,273,602
Series D, BIG Insured, 7.45%, 9/01/24 ................................................ 7,605,000 7,774,820
Series E, BIG Insured, 7.50%, 9/01/24 ................................................ 495,000 506,073
Clayton 1915 Act, Limited Obligation, Contra Costa County, Oakhurst Country Club,
8.10%, 9/02/01 ....................................................................... 65,000 67,303
8.20%, 9/02/02 ....................................................................... 100,000 103,683
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Clayton 1915 Act, Limited Obligation, Contra Costa County, Oakhurst Country
Club, (cont.)
8.25%, 9/02/03 ....................................................................... $ 95,000 $ 98,478
8.30%, 9/02/04 ....................................................................... 130,000 134,705
8.30%, 9/02/05 ....................................................................... 150,000 155,304
8.35%, 9/02/06 ....................................................................... 140,000 144,920
8.35%, 9/02/07 ....................................................................... 170,000 175,918
8.375%, 9/02/08 ...................................................................... 180,000 186,156
8.375%, 9/02/09 ...................................................................... 200,000 206,808
8.40%, 9/02/10 ....................................................................... 25,000 25,852
8.40%, 9/02/11 ....................................................................... 195,000 201,642
8.40%, 9/02/12 ....................................................................... 240,000 248,124
8.40%, 9/02/13 ....................................................................... 270,000 279,140
Clayton Special Tax, CFD No. 90-1, Pre-Refunded, 8.60%, 9/02/22 .......................... 6,215,000 6,579,883
Clovis COP, Pre-Refunded, 7.20%, 8/01/11 ................................................. 2,670,000 2,871,638
Coachella RDA, Tax Allocation, Project Area No. 4, Pre-Refunded, 8.45%, 9/01/20 .......... 1,750,000 1,860,863
Coachella Valley COP, ID No. 71, Storm Water District, Flood Control Project,
Pre-Refunded, 6.75%, 10/01/12 .......................................................... 3,000,000 3,280,860
Coachella Valley USD, COP, 8.25%, 9/01/12 ................................................ 6,375,000 6,650,145
Colma 1915 Act, Local ID No. 1, Refunding, 4.90%, 9/02/00 ................................ 440,000 442,077
Colton RDA, MFR, Seniors Housing Project, Series A, 7.75%, 7/01/22 ....................... 4,100,000 4,168,675
Colusa County COP, ABAG Finance Corp., Series B, 7.00%, 2/01/18 .......................... 1,555,000 1,612,737
Commerce Joint Powers Financing Authority Lease Revenue, Community Center,
Series A, 6.25%, 10/01/22 .............................................................. 4,000,000 4,052,040
Commerce Refuse to Energy Authority Revenue, Refunding, Series 1994, 8.75%,
7/01/10 ................................................................................ 31,825,000 36,203,484
Compton COP, Civic Center and Capital Improvement, Refunding, Series A, 5.50%,
9/01/15 ................................................................................ 5,000,000 4,855,350
Compton CRDA, Tax Allocation, Series 1, FSA Insured, 6.75%, 8/01/13 ...................... 7,005,000 7,359,593
Compton Sewer Revenue,
Pre-Refunded, 6.75%, 7/01/23 ......................................................... 4,535,000 5,008,545
Series 1993, Pre-Refunded, 6.60%, 7/01/12 ............................................ 1,405,000 1,544,488
Concord RDA, Tax Allocation, Central Concord Redevelopment Project, Refunding,
Sub Series A, 6.00%, 7/01/19 ........................................................... 8,395,000 8,414,225
Contra Costa County COP,
Capital Projects Program, Refunding, AMBAC Insured, 5.25%, 2/01/21 ................... 6,570,000 6,253,917
Merrithew Memorial Hospital Project, Refunding, MBIA Insured, 5.50%,
11/01/22 ............................................................................... 11,000,000 10,774,280
Series 1994, Pre-Refunded, 6.50%, 8/01/24 ............................................ 4,500,000 5,008,320
Contra Costa County MFHR, Byron Park Project, Refunding, Series C, GNMA Secured,
6.40%, 1/20/31 ......................................................................... 5,930,000 6,139,092
Contra Costa Transportation Authority Revenue, Sales Tax, Series A,
ETM, 6.875%, 3/01/07 ................................................................. 13,900,000 15,174,213
FGIC Insured, ETM, 6.50%, 3/01/09 .................................................... 1,000,000 1,052,290
Corcoran Hospital District Revenue, Series A, 6.55%, 7/01/12 ............................. 1,245,000 1,294,016
Corona 1915 Act,
AD No. 79-2 and 80-1, Refunding, 8.10%, 9/02/00 ...................................... 1,480,000 1,520,138
AD No. 79-2 and 80-1, Refunding, 8.10%, 9/02/01 ...................................... 1,575,000 1,636,031
AD No. 79-2 and 80-1, Refunding, 8.10%, 9/02/02 ...................................... 1,540,000 1,598,797
AD No. 79-2 and 80-1, Refunding, 8.10%, 9/02/03 ...................................... 1,650,000 1,712,321
AD No. 79-2 and 80-1, Refunding, 8.10%, 9/02/04 ...................................... 1,885,000 1,955,009
AD No. 79-2, Northeast Area, Series B, 7.80%, 9/02/00 ................................ 810,000 829,837
AD No. 79-2, Northeast Area, Series B, 7.80%, 9/02/01 ................................ 875,000 907,865
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Corona 1915 Act, (cont.)
AD No. 79-2, Northeast Area, Series B, 7.85%, 9/02/02 .............................................. $ 925,000 $ 959,401
AD No. 79-2, Northeast Area, Series B, 7.85%, 9/02/03 .............................................. 985,000 1,021,228
AD No. 79-2, Northeast Area, Series B, 7.85%, 9/02/04 .............................................. 1,055,000 1,093,138
Corona COP,
Corona Community Hospital Project, Pre-Refunded, 9.425%, 9/01/20 ................................... 15,000,000 19,551,300
Vista Hospital System, Refunding, Series C, 9.50%, 7/01/20 ......................................... 22,325,000 22,325,000
Corona-Norco USD,
Lease Revenue, Land Acquisition, Series A, FSA Insured, 6.00%, 4/15/29 ............................. 18,435,000 18,833,196
Special Tax, CFD No. 88-1, Pre-Refunded, 7.55%, 10/01/14 ........................................... 5,195,000 5,350,850
Corona RDA, Tax Allocation, Redevelopment Project Area A, Refunding, Series A, FGIC Insured,
6.25%, 9/01/16 ..................................................................................... 3,000,000 3,194,760
CSAC Finance Corp. COP, Sutter County, Health Facilities Program, 7.80%, 1/01/21 ......................... 2,100,000 2,113,167
Cucamonga School District COP, Pre-Refunded, 7.60%, 12/01/15 ............................................. 1,750,000 1,795,955
Culver City Redevelopment Finance Authority Revenue, Sub. Lien, Project Loans, Series B,
7.50%, 12/01/08 .................................................................................... 1,630,000 1,672,413
7.60%, 12/01/15 .................................................................................... 7,955,000 8,163,182
AMBAC Insured, Pre-Refunded, 7.50%, 12/01/08 ....................................................... 3,370,000 3,457,957
AMBAC Insured, Pre-Refunded, 7.60%, 12/01/15 ....................................................... 16,445,000 16,876,846
Culver City USD, GO, MBIA Insured, 5.75%, 8/01/36 ........................................................ 5,000,000 5,009,800
Cupertino COP,
Memorial Park Expansion Project, Bank Qualified, Pre-Refunded, 7.25%, 7/01/10 ...................... 4,110,000 4,302,184
Refunding, Series A, 5.75%, 1/01/16 ................................................................ 5,000,000 5,055,750
Refunding, Series B, 6.25%, 7/01/10 ................................................................ 3,535,000 3,726,844
Cypress COP, Civic Center, Refunding and Improvement Project, 6.80%, 8/01/17 ............................. 3,440,000 3,628,271
Desert Hot Springs RDA, Tax Allocation, Redevelopment Project No. 2, Series A, 6.625%, 9/01/20 ........... 1,230,000 1,279,421
Downey Community Development Commission Tax Allocation, Downey Redevelopment Project, Refunding,
MBIA Insured, 5.125%,
8/01/20 ............................................................................................ 2,770,000 2,570,671
8/01/28 ............................................................................................ 4,120,000 3,759,212
Duarte COP,
City Civic Center, Refunding, 7.00%, 6/15/22 ....................................................... 5,370,000 5,626,901
Refunding, Series A, 5.25%, 4/01/24 ................................................................ 5,000,000 4,463,200
Series A, 5.25%, 4/01/19 ........................................................................... 5,000,000 4,551,050
Series A, 5.25%, 4/01/31 ........................................................................... 12,500,000 10,942,250
East Bay MUD,
Wastewater System Revenue, Sub., MBIA Insured, 5.00%, 6/01/38 ...................................... 23,115,000 20,306,528
Water System Revenue, Sub., MBIA Insured, 5.00%, 6/01/38 ........................................... 64,095,000 56,307,458
Water System Revenue, Sub., Refunding, 6.00%, 6/01/20 .............................................. 15,100,000 15,517,213
East Side UHSD, Santa Clara County, Series D, FGIC Insured, 5.80%, 9/01/21 ............................... 9,100,000 9,194,458
Eastern Municipal Water District, Water and Sewer Revenue COP, Refunding, Series A, FGIC Insured,
6.30%, 7/01/20 ..................................................................................... 7,975,000 8,242,322
El Cajon RDA, Tax Allocation, Redevelopment Project, Refunding, AMBAC Insured, 5.35%, 10/01/22 ........... 11,285,000 10,768,486
El Camino Hospital District Revenue, Refunding, Series A, ETM, 7.25%, 8/15/09 ............................ 8,945,000 10,145,330
El Dorado County Board Authority Lease Revenue, Capital Facilities Project, Pre-Refunded,
7.40%, 11/01/09 .................................................................................... 5,500,000 5,831,375
El Dorado County Special Tax, Community Facilities District No 1992-1, 6.25%, 9/01/29 .................... 20,000,000 19,998,600
El Dorado UHSD COP, Capital Projects, Pre-Refunded, 6.30%, 8/01/12 ....................................... 3,390,000 3,653,674
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
El Monte COP, Department of Public Social Services Facility, AMBAC Insured, 4.75%, 6/01/30 ............. $ 10,790,000 $ 9,093,273
El Monte PFA, Tax Allocation Revenue, Downtown El Monte Redevelopment Project, Series A, Pre-Refunded,
6.35%, 12/01/23 .................................................................................. 2,480,000 2,722,941
Emeryville PFA Revenue,
Housing Increment Loan, 6.20%, 9/01/25 ........................................................... 3,115,000 3,165,401
Housing Increment Loan, Series A, Pre-Refunded, 6.20%, 9/01/25 ................................... 2,970,000 3,294,443
Shellmound Park Redevelopment and Housing Project, Series B, MBIA Insured, 5.00%, 9/01/28 ........ 20,000,000 17,845,400
Empire USD COP, Garst School Supplies Financing Project, 6.75%, 12/01/17 ............................... 1,165,000 1,223,588
Empire USD, Special Tax, CFD No. 1987-1, Refunding, Series A, MBIA Insured, 6.50%, 10/01/17 ............ 2,700,000 2,877,903
Escondido COP,
Escondido Mobile Home Park, Pre-Refunded, 7.25%, 3/01/07 ......................................... 1,000,000 1,064,560
Escondido Mobile Home Park, Pre-Refunded, 7.40%, 3/01/21 ......................................... 4,910,000 5,237,006
Wastewater Project, Refunding, AMBAC Insured, 5.70%, 9/01/26 ..................................... 13,465,000 13,464,192
Wastewater Project, Refunding, AMBAC Insured, 5.80%, 9/01/26 ..................................... 400,000 404,128
Fairfield PFA Revenue, Fairfield Redevelopment Projects, Series A, 7.80%, 8/01/19 ...................... 2,145,000 2,176,767
Fairoaks Fire Protection District COP, 8.00%, 12/01/15 ................................................. 1,960,000 2,043,320
Fallbrook UHSD, San Diego County, Series A, MBIA Insured, Pre-Refunded, 6.25%, 9/01/19 ................. 6,000,000 6,634,920
Fillmore COP, Water System Improvement Project, AMBAC Insured, 7.70%, 5/01/19 .......................... 2,590,000 3,005,099
Folsom PFA Revenue, Local Agency,
7.25%, 10/01/10 .................................................................................. 3,000,000 3,165,780
8.00%, 10/01/18 .................................................................................. 7,590,000 7,694,363
Folsom Special Tax, CFD No. 2, Pre-Refunded,
7.60%, 12/01/09 .................................................................................. 3,910,000 4,012,325
7.70%, 12/01/19 .................................................................................. 3,950,000 4,054,004
Fontana PFA Revenue, Tax Allocation, North Fontana Redevelopment,
Series B, 6.30%, 1/15/24 ......................................................................... 1,905,000 1,923,917
Sub. Lien, Series A, Pre-Refunded, 7.65%, 12/01/09 ............................................... 2,000,000 2,191,140
Sub. Lien, Series A, Pre-Refunded, 7.75%, 12/01/20 ............................................... 11,005,000 12,079,308
Fontana RDA, Tax Allocation, Jurupa Hills Redevelopment Project,
Refunding, Series A, 5.50%, 10/01/27 ............................................................. 12,500,000 11,577,875
Series A, Pre-Refunded, 7.10%, 10/01/23 .......................................................... 10,000,000 11,018,900
Foothill/Eastern Corridor Agency Toll Road Revenue,
Capital Appreciation, Refunding, MBIA Insured, 5.75%, 1/15/40 .................................... 332,660,000 317,623,768
Senior Lien, Series A, 5.00%, 1/01/35 ............................................................ 15,955,000 13,896,645
Senior Lien, Series A, Pre-Refunded, 7.15%, 1/01/14 .............................................. 5,500,000 4,642,165
Senior Lien, Series A, Pre-Refunded, 6.50%, 1/01/32 .............................................. 108,175,000 120,487,479
Senior Lien, Series A, Pre-Refunded, 6.00%, 1/01/34 .............................................. 132,495,000 143,541,108
Fort Bragg RDA, Tax Allocation Revenue, Fort Bragg Redevelopment Project, Series A, 6.875%, 5/01/18 .... 2,015,000 2,100,255
Fortuna and Susanville Cities COP, Series B, 7.375%, 9/01/17 ........................................... 2,000,000 2,075,320
Fremont RDA, Tax Allocation, Irvington Redevelopment Project, 7.75%, 8/01/06 ........................... 1,980,000 2,009,482
Fresno County COP, American Avenue Landfill Project,
ETM, 7.75%, 11/01/99 ............................................................................. 295,000 295,900
ETM, 7.90%, 11/01/00 ............................................................................. 320,000 334,781
ETM, 8.00%, 11/01/01 ............................................................................. 345,000 373,024
Pre-Refunded, 8.25%, 11/01/13 .................................................................... 7,185,000 7,995,468
Fresno County Office of Education COP, Capital Outlay Financing Program, Series C, 7.50%, 12/01/10 ..... 2,470,000 2,550,794
Fresno Health Facilities Revenue, Holy Cross Health Systems Corp., MBIA Insured, 5.625%, 12/01/15 ...... 5,000,000 5,031,850
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Fresno RDAR, Tax Allocation, Mariposa Redevelopment Project, Series A, 6.625%, 2/01/23 ................... $ 1,505,000 $ 1,550,857
Fresno USD, COP, Project Phase VI, Series A, Pre-Refunded, 7.20%, 5/01/11 ................................ 7,065,000 7,552,132
Galt COP, Wastewater Improvement, 7.80%, 9/01/10 ......................................................... 3,340,000 3,532,417
Glendale USD, COP, Series A, AMBAC Insured, 6.00%, 3/01/19 ............................................... 7,250,000 7,443,068
Grand Terrace PFA, Series A, Pre-Refunded, 7.85%, 6/01/21 ................................................ 2,945,000 3,185,754
Guam Power Authority Revenue, Refunding, Series A, 5.25%, 10/01/34 ....................................... 10,000,000 8,855,000
Hawaiian Gardens RDA, Tax Allocation, Project No. 1,
Refunding, 6.35%, 12/01/33 ......................................................................... 13,000,000 13,213,460
Refunding, ETM, 8.00%, 12/01/10 .................................................................... 6,905,000 7,974,654
Helix Water District COP, Installment Purchase, Series A, FSA Insured, 5.25%, 4/01/24 .................... 8,925,000 8,420,648
Hemet USD, COP, Series 1991, Pre-Refunded, 8.00%, 12/01/13 ............................................... 4,000,000 4,410,960
Hemet Valley Hospital District Revenue COP, Hemacinto Community Corp. Project, Series A, 7.75%, 5/01/19 .. 2,515,000 2,540,552
Hesperia PFA Revenue, Highway and Street Improvement, Series A, 6.10%, 10/01/10 .......................... 1,600,000 1,676,112
Hesperia Water District COP, Water Facilities Improvement Projects, FGIC Insured, Pre-Refunded,
7.15%, 6/01/26 ..................................................................................... 5,000,000 5,331,400
Hollister RDA, Tax Allocation, Community Development Project,
Series 1989, Pre-Refunded, 7.55%, 10/01/13 ......................................................... 2,000,000 2,040,000
Series B, FSA Insured, 6.625%, 10/01/07 ............................................................ 1,905,000 2,025,453
Series B, FSA Insured, 6.75%, 10/01/13 ............................................................. 1,495,000 1,583,908
Huntington Beach COP, Emerald Cove Senior Citizens Housing Project, Refunding, 7.00%, 9/01/21 ............ 3,655,000 3,735,447
Huntington Beach PFA Revenue, Huntington Beach Redevelopment Projects, Refunding, 7.00%, 8/01/24 ......... 2,630,000 2,727,284
Huntington Park PFA, Local Agency Revenue, Refunding, Series A, MBIA Insured, 6.45%, 9/01/22 ............. 10,000,000 10,685,500
Huntington Park RDA, Sales and Use Tax Revenue, Junior Lien, Tax Allocation, Merged Project, Pre-Refunded,
8.00%, 1/01/22 ..................................................................................... 11,665,000 12,021,016
Imperial COP,
Wastewater System Refining Program, Refunding, Series B, 5.85%, 10/15/16 ........................... 1,820,000 1,868,558
Wastewater System Refining Program, Refunding, Series B, 5.875%, 10/15/20 .......................... 3,175,000 3,251,010
Water System Refining Program, Refunding, Series A, 5.85%, 10/15/16 ................................ 2,625,000 2,695,035
Water System Refining Program, Refunding, Series A, 5.875%, 10/15/20 ............................... 4,535,000 4,643,568
Imperial Irrigation District COP, Electric System Project, Series 1994, Pre-Refunded, 6.00%, 11/01/18 .... 21,010,000 22,950,063
Indio PFAR, Tax Allocation, Series 1992, Pre-Refunded,
6.85%, 8/15/01 ..................................................................................... 255,000 264,718
6.95%, 8/15/02 ..................................................................................... 275,000 285,640
7.10%, 8/15/03 ..................................................................................... 300,000 311,982
7.30%, 8/15/22 ..................................................................................... 12,120,000 12,621,041
Industry COP, Refunding, 6.625%, 6/01/06 ................................................................. 11,380,000 12,516,407
Industry Urban Development Agency Tax Allocation, Transportation District No. 3 Project, Refunding,
6.90%, 11/01/07 .................................................................................... 5,860,000 6,213,182
Inglewood Hospital Revenue, Daniel Freeman Hospital Inc., Pre-Refunded, 6.75%, 5/01/13 ................... 12,000,000 12,736,320
Inglewood PFA Revenue, La Cinega Redevelopment Project, Series A, AMBAC Insured, 6.00%, 5/01/16 .......... 7,410,000 7,602,734
Inglewood USD, COP, 7.375%, 10/01/05 ..................................................................... 2,990,000 3,084,424
Inland Empire Solid Waste Financing Authority Revenue, Landfill Improvement Financing Project, Series B,
FSA Insured,
6.25%, 8/01/11 ..................................................................................... 5,000,000 5,383,300
6.00%, 8/01/16 ..................................................................................... 5,000,000 5,140,800
Intercommunity Hospital Financing Authority COP, Northbay Healthcare System, Refunding, ACA Insured,
5.25%, 11/01/19 .................................................................................... 5,000,000 4,592,850
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Intermodal Container Transfer Facility Joint Powers Authority Revenue, Refunding, Series A,
7.65%, 11/01/04 .................................................................................... $ 9,640,000 $ 9,876,373
7.70%, 11/01/14 .................................................................................... 27,465,000 28,139,815
Inyo County COP, Series 1990, Pre-Refunded, 7.30%, 12/01/10 .............................................. 1,470,000 1,478,673
Irvine USD, Special Tax, CFD No. 86-1, Refunding, AMBAC Insured, 5.80%, 11/01/20 ......................... 8,165,000 8,307,888
Irwindale CRDA, Tax Allocation,
Individual Development Project, Pre-Refunded, 6.60%, 8/01/18 ....................................... 1,630,000 1,830,180
Individual Development Project, Pre-Refunded, 6.625%, 8/01/26 ...................................... 9,100,000 10,299,562
Senior Lien, Refunding, FSA Insured, 5.75%, 8/01/26 ................................................ 10,220,000 10,288,883
Irwindale PFA Special Tax, CFD No.1, Pre-Refunded, 8.50%, 11/01/20 ....................................... 10,000,000 10,759,900
John C. Fremont Hospital District Health Facilities Revenue, 6.75%, 6/01/23 .............................. 1,760,000 1,871,232
Keppel USD, Special Tax, CFD No. 91-1, Series A, 7.40%, 9/01/16 .......................................... 2,000,000 2,127,560
Kern County Board of Education COP,
Refunding, Series A, MBIA Insured, 5.20%, 5/01/28 .................................................. 13,685,000 12,724,860
Series A, MBIA Insured, 5.25%, 6/01/29 ............................................................. 5,775,000 5,404,707
Kern County Housing Authority RRMR, Series A, 9.875%, 9/01/08 ............................................ 3,105,000 3,120,649
Kern County Housing Authority SFMR, Series A, GNMA Secured,
7.45%, 12/01/02 .................................................................................... 130,000 132,310
7.55%, 12/01/07 .................................................................................... 285,000 295,650
7.65%, 12/01/12 .................................................................................... 415,000 427,089
7.70%, 12/01/23 .................................................................................... 1,895,000 1,928,200
7.50%, 10/01/24 .................................................................................... 805,000 816,858
La Habra COP, Park La Habra and Viewpark Projects, FSA Insured, Pre-Refunded, 6.625%, 11/01/22 ........... 3,000,000 3,280,380
La Mesa Parking Authority Lease Revenue, Refunding, AMBAC Insured, 6.00%, 10/01/07 ....................... 3,520,000 3,763,091
La Mirada RDA,
Special Tax, Civic Theater Project, CFD No. 89-1, Pre-Refunded, 7.90%, 10/01/01 .................... 295,000 313,148
Special Tax, Civic Theater Project, CFD No. 89-1, Pre-Refunded, 8.00%, 10/01/02 .................... 315,000 334,681
Special Tax, Civic Theater Project, CFD No. 89-1, Pre-Refunded, 8.00%, 10/01/03 .................... 340,000 361,243
Special Tax, Civic Theater Project, CFD No. 89-1, Pre-Refunded, 8.25%, 10/01/20 .................... 12,725,000 13,550,725
Tax Allocation, Housing, Refunding, Series A, FSA Insured, 5.875%, 8/15/25 ......................... 7,100,000 7,204,228
La Mirada SFMR, MBS, Series A, 7.65%, 4/01/24 ............................................................ 1,660,000 1,714,249
La Palma Community Development Commission Tax Allocation, La Palma Community Development Project No. 1,
7.10%, 6/01/21 ..................................................................................... 4,945,000 5,132,168
6.10%, 6/01/22 ..................................................................................... 2,355,000 2,354,765
La Quinta RDA, Tax Allocation,
Redevelopment Project Area No. 1, Refunding, AMBAC Insured, 5.20%, 9/01/28 ......................... 8,600,000 7,993,786
Redevelopment Project Area No. 1, Refunding, AMBAC Insured, 5.25%, 9/01/33 ......................... 4,300,000 3,998,656
Redevelopment Project Areas No. 1 and 2, MBIA Insured, 6.00%, 9/01/25 .............................. 7,500,000 7,693,875
Lake Arrowhead Community Services District COP, FGIC Insured,
6.50%, 6/01/15 ..................................................................................... 6,430,000 6,837,276
Pre-Refunded, 6.50%, 6/01/15 ....................................................................... 3,570,000 3,858,670
Lake Elsinore PFA, Tax Allocation Revenue, Lake Elsinore Redevelopment Projects, Series A, FSA Insured,
5.80%, 9/01/25 ......................................................................................... 6,750,000 6,803,190
Lake Elsinore PFA Tax Allocation Revenue, Series A, 5.50%, 9/01/30 ....................................... 13,050,000 12,050,892
Lake Elsinore USD,
COP, Pre-Refunded, 6.90%, 2/01/20 .................................................................. 5,150,000 5,666,288
Special Tax, CFD No. 8, Pre-Refunded, 8.25%, 9/01/16 ............................................... 4,200,000 4,603,662
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Lakewood RDA, Tax Allocation, Redevelopment Project No.1, Refunding, Series A, FSA Insured, 6.50%,
9/01/17 ............................................................................................ $ 6,705,000 $ 7,138,478
Lancaster COP, School District Project, FSA Insured, Pre-Refunded,
6.95%, 3/01/12 ..................................................................................... 2,640,000 2,906,930
7.00%, 3/01/22 ..................................................................................... 3,555,000 3,896,813
Lancaster RDA,
RMR, Los Angeles County, Series A, ETM, 10.125%, 9/01/16 ........................................... 5,000 5,097
Tax Allocation, Amargosa Redevelopment Project, Refunding, MBIA Insured, 6.85%, 2/01/19 ............ 6,055,000 6,337,345
Tax Allocation, Combined Redevelopment Project Areas, Housing Program, MBIA Insured, 5.80%, 8/01/23 9,125,000 9,204,753
Tax Allocation, Combined Redevelopment Project Areas, Sheriff's Program, MBIA Insured, 5.70%,
8/01/23 .......................................................................................... 13,140,000 13,158,133
Lassen County COP, Public Facility Project,
Series A, Pre-Refunded, 7.50%, 11/01/04 ............................................................ 1,260,000 1,287,430
Series A, Pre-Refunded, 7.60%, 11/01/09 ............................................................ 1,840,000 1,879,174
Series B, Pre-Refunded, 7.50%, 11/01/04 ............................................................ 835,000 853,178
Series B, Pre-Refunded, 7.60%, 11/01/09 ............................................................ 1,050,000 1,072,355
Lemon Grove CDA, Tax Allocation,
1998 Refunding, 5.75%, 8/01/28 ..................................................................... 8,115,000 7,688,963
Lemon Redevelopment Project, Pre-Refunded, 6.90%, 8/01/20 .......................................... 1,000,000 1,093,630
Lemoore Financing Authority Lease Revenue, Water and Wastewater System Improvement Project, AMBAC Insured,
6.20%, 12/01/20 ........................................................................................ 4,400,000 4,654,364
Lemoore RDA, Tax Allocation, Refunding, 6.85%, 8/01/25 ................................................... 6,105,000 6,423,376
Liberty UHSD, Series A, FSA Insured, 6.20%, 8/01/19 ...................................................... 2,745,000 2,892,681
Little Lake City School District COP, Refunding, Series A,
6.15%, 6/01/06 ..................................................................................... 280,000 287,193
6.20%, 6/01/07 ..................................................................................... 300,000 307,701
6.25%, 6/01/08 ..................................................................................... 315,000 322,138
6.25%, 6/01/09 ..................................................................................... 335,000 340,933
6.25%, 6/01/10 ..................................................................................... 355,000 361,465
Local Medical Facilities Financing Authority COP, Insured California Health Clinic Project, 7.55%,
3/01/20 ............................................................................................ 9,165,000 9,441,141
Local Medical Facilities Financing Authority II COP, Insured California Health Clinic Project, 7.55%,
11/01/20 ........................................................................................... 4,060,000 4,249,237
Local Medical Facilities Financing Authority III COP, Insured California Health Clinic Project, 6.90%,
7/01/22 ............................................................................................ 3,470,000 3,670,497
Loma Linda Hospital Revenue,
Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 3.00%, 12/01/99 .......... 725,000 724,543
Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 3.65%, 12/01/00 .......... 5,690,000 5,685,334
Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 3.85%, 12/01/01 .......... 5,850,000 5,853,393
Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 4.55%, 12/01/07 .......... 6,745,000 6,721,932
Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 4.65%, 12/01/08 .......... 7,545,000 7,505,691
Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 4.75%, 12/01/09 .......... 7,850,000 7,774,719
Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 5.15%, 12/01/13 .......... 5,405,000 5,319,331
Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 5.25%, 12/01/15 .......... 5,960,000 5,788,948
Loma Linda University Medical Center, Refunding, Series A, AMBAC Insured, 6.55%, 12/01/18 .......... 11,525,000 12,331,174
Loma Linda University Medical Center, Refunding, Series B, MBIA Insured, 5.00%, 12/01/22 ........... 8,000,000 7,208,400
Long Beach California Board Finance Authority Lease Revenue, Temple and Willow Facility, Refunding,
Series B,
MBIA Insured, 5.00%, 10/01/27 ............................................................................ 14,935,000 13,347,410
Long Beach COP, Fleet Services Project, Series A, Pre-Refunded, 6.60%, 5/01/14 ........................... 7,715,000 8,001,689
Long Beach Harbor Revenue, MBIA Insured,
5.375%, 5/15/20 .................................................................................... 10,000,000 9,423,400
5.25%, 5/15/25 ..................................................................................... 5,500,000 5,043,940
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Long Beach HMR, Series A, 9.60%, 11/01/14 .............................................................. $ 1,635,000 $ 1,646,429
Long Beach USD, COP, Los Angeles County Schools, Series A, 6.30%, 12/01/12 ............................. 3,735,000 3,982,817
Los Angeles Community College District COP, Series A, Refunding, FSA Insured, 6.00%, 8/15/20 ........... 4,330,000 4,447,040
Los Angeles COP,
Ararat Mission Hills Project, Series A, Pre-Refunded, 7.25%, 6/01/21 ............................. 3,185,000 3,356,863
Bay Harbor Hospital Inc., 7.30%, 4/01/20 ......................................................... 5,335,000 5,536,770
Department of Public Social Services, Series A, AMBAC Insured, 5.50%, 8/01/24 .................... 4,000,000 3,904,440
Department of Public Social Services, Series A, AMBAC Insured, 5.50%, 8/01/31 .................... 5,000,000 4,839,200
Los Angeles County Capital Assets Leasing Corp. Leasehold Revenue, Refunding, AMBAC Insured,
6.00%, 12/01/16 ........................................................................................ 6,000,000 6,173,220
Los Angeles County COP,
CHFCLP Insured Health Clinic Program, Behavioral Health Service, Refunding, Series F, 5.875%,
1/01/21 .......................................................................................... 7,520,000 7,537,822
CHFCLP Insured Health Clinic Program, Series A, 7.30%, 1/01/21 ................................... 15,545,000 16,235,198
CHFCLP Insured Health Clinic Program, Series B, 7.05%, 8/01/21 ................................... 7,175,000 7,464,081
CHFCLP Insured Health Clinic Program, Series C, 6.90%, 1/01/22 ................................... 1,220,000 1,267,934
Disney Parking Project, Pre-Refunded, 6.50%, 3/01/23 ............................................. 13,060,000 14,230,045
Marina del Rey, Series A, 6.50%, 7/01/08 ......................................................... 21,615,000 22,822,414
Retirement Housing Foundation, Refunding, 6.625%, 4/15/12 ........................................ 3,400,000 3,671,456
Retirement Housing Foundation, Refunding, 6.75%, 4/15/22 ......................................... 7,665,000 8,299,815
Series 1992, 6.625%, 7/01/22 ..................................................................... 1,000,000 1,049,020
Los Angeles County MTA, Sales Tax Revenue,
Proposition A, First Tier, Refunding, Senior Series A, AMBAC Insured, 5.00%, 7/01/26 ............. 13,000,000 11,643,060
Proposition A, First Tier, Refunding, Senior Series A, MBIA Insured, 5.25%, 7/01/27 .............. 32,590,000 30,469,369
Proposition A, First Tier, Senior Series A, MBIA Insured, Pre-Refunded, 6.00%, 7/01/23 ........... 6,000,000 6,587,820
Proposition A, Refunding, Series A, FGIC Insured, 5.00%, 7/01/21 ................................. 118,800,000 108,362,232
Proposition A, Refunding, Series A, MBIA Insured, 5.625%, 7/01/18 ................................ 10,060,000 10,081,025
Proposition A, Second Tier, MBIA Insured, Pre-Refunded, 6.00%, 7/01/26 ........................... 12,200,000 13,395,234
Proposition C, Second Senior Series A, AMBAC Insured, 5.00%, 7/01/25 ............................. 58,000,000 52,116,480
Los Angeles County Public Works Financing Authority Revenue,
Master Project, Refunding, Series A, FSA Insured, 5.25%, 3/01/15 ................................. 5,000,000 4,896,400
Multiple Capital Facilities Project, Series B, AMBAC Insured, 5.125%, 12/01/29 ................... 23,600,000 21,497,240
Regional Park and Open Space District, Series A, Pre-Refunded, 6.00%, 10/01/15 ................... 35,355,000 38,666,349
Los Angeles County Sanitation Districts Financing Authority Revenue, Capital Projects, Series A,
5.00%, 10/01/23 ........................................................................................ 25,750,000 23,129,938
Los Angeles County Sanitation Districts Financing Authority Revenue, Capital Projects, Series A,
MBIA Insured,
5.25%, 10/01/19 .................................................................................. 30,000,000 28,746,300
5.00%, 10/01/23 .................................................................................. 14,300,000 12,930,632
Los Angeles County SFMR, Issue A, GNMA Secured,
7.875%, 8/01/16 .................................................................................. 1,685,000 1,742,913
8.00%, 3/01/17 ................................................................................... 2,400,000 2,422,200
Los Angeles County Transportation Commission Lease Revenue, FSA Insured, 7.375%, 12/15/06 .............. 12,306,000 12,997,105
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 32,130,893
Proposition C, Second Senior, Series A, MBIA Insured, Pre-Refunded, 6.25%, 7/01/13 ............... 15,000,000 16,143,450
Refunding, Series B, 6.50%, 7/01/13 .............................................................. 4,300,000 4,513,366
Refunding, Series B, FGIC Insured, 5.75%, 7/01/18 ................................................ 28,095,000 28,170,295
Refunding, Series B, MBIA Insured, 5.75%, 7/01/18 ................................................ 13,480,000 13,516,126
Series B, FGIC Insured, Series B, FGIC Insured, 6.50%, 7/01/13 ................................... 5,000,000 5,252,400
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Los Angeles CRDA,
Financing Authority Revenue, Pooled Financing, Beacon Normandie, Series B, 6.625%, 9/01/14 ..... $ 7,500,000 $ 7,832,850
Financing Authority Revenue, Pooled Financing, Bunker Harbor, Series A, 6.375%, 9/01/14 ........ 5,000,000 5,400,100
MFHR, Angelus Plaza Project, Refunding, Series A, 6.40%, 7/01/23 ............................... 6,310,000 6,470,526
Tax Allocation, Bunker Hill, Refunding, Series H, FSA Insured, 5.625%, 12/01/18 ................ 20,000,000 20,044,600
Tax Allocation, Bunker Hill, Refunding, Series H, FSA Insured, 5.625%, 12/01/23 ................ 50,090,000 49,791,464
Tax Allocation, Bunker Hill, Refunding, Series H, FSA Insured, 5.60%, 12/01/28 ................. 36,900,000 36,375,282
Tax Allocation, Series G, ETM, 6.75%, 7/01/10 .................................................. 8,060,000 8,152,609
Los Angeles Department of Airports Revenue, Ontario International Airport, Series A, FGIC Insured,
6.00%, 5/15/26 ....................................................................................... 10,000,000 10,120,900
Los Angeles Department of Water and Power Electric Plant Revenue,
FGIC Insured, 6.125%, 1/15/33 .................................................................. 5,000,000 5,136,350
Refunding, 5.875%, 9/01/30 ..................................................................... 33,125,000 33,459,563
Refunding, FGIC Insured, 5.875%, 9/01/30 ....................................................... 15,000,000 15,189,000
Refunding, MBIA Insured, 5.875%, 9/01/30 ....................................................... 19,400,000 19,644,440
Refunding, MBIA Insured, 6.00%, 2/01/28 ........................................................ 11,060,000 11,348,666
Refunding, Second Issue, 5.40%, 11/15/31 ....................................................... 14,500,000 13,820,530
Refunding, Series 1992, 6.375%, 2/01/20 ........................................................ 8,245,000 8,633,257
Refunding, Series 1992, 6.00%, 2/01/28 ......................................................... 8,290,000 8,524,607
Refunding, Series 1993, MBIA Insured, 5.375%, 9/01/23 .......................................... 62,955,000 60,536,269
Second Issue, 6.00%, 8/15/32 ................................................................... 37,600,000 38,357,264
Series 1993, 6.125%, 1/15/33 ................................................................... 101,095,000 104,552,449
Los Angeles Department of Water and Power Waterworks Revenue,
FGIC Insured, 6.125%, 5/15/25 .................................................................. 11,100,000 12,036,840
Refunding, Series 1992, 6.40%, 5/15/28 ......................................................... 21,590,000 22,466,770
Refunding, Series 1993, 5.80%, 4/15/24 ......................................................... 10,520,000 10,578,912
Second Issue, 6.50%, 11/01/14 .................................................................. 1,000,000 1,062,270
Second Issue, 6.40%, 11/01/31 .................................................................. 14,815,000 15,708,345
Second Issue, FGIC Insured, 6.40%, 11/01/31 .................................................... 5,500,000 5,831,650
Second Issue, FGIC Insured, 6.00%, 7/15/32 ..................................................... 3,200,000 3,392,416
Second Issue, MBIA Insured, 6.00%, 7/15/32 ..................................................... 4,330,000 4,590,363
Series 1992, 6.50%, 4/15/32 .................................................................... 3,500,000 3,740,135
Series 1994, MBIA Insured, 6.375%, 7/01/34 ..................................................... 3,000,000 3,271,200
Los Angeles GO, Series A, FGIC Insured, Pre-Refunded,
6.10%, 9/01/12 ................................................................................. 5,465,000 5,902,145
6.125%, 9/01/13 ................................................................................ 8,130,000 8,787,636
6.30%, 9/01/15 ................................................................................. 11,470,000 12,469,496
Los Angeles Harbor Department Revenue,
Refunding, Series C, MBIA Insured, 5.375%, 11/01/25 ............................................ 9,000,000 8,616,690
Series B, 6.125%, 8/01/18 ...................................................................... 24,810,000 25,669,667
Series B, 6.20%, 8/01/22 ....................................................................... 59,835,000 61,880,759
Series B, 5.375%, 11/01/23 ..................................................................... 7,460,000 6,977,711
Series B, MBIA Insured, 6.20%, 8/01/25 ......................................................... 35,690,000 37,172,920
Los Angeles HMR, Series 1985, 9.00%, 6/15/18 ......................................................... 200,000 200,098
Los Angeles MFHR, Refunding, Senior Series G, FSA Insured, 5.75%, 1/01/24 ............................ 7,330,000 7,352,063
Los Angeles Municipal Improvement Corp. Lease Revenue, Central Library Project, Refunding, Series A,
6.30%, 6/01/18 ....................................................................................... 3,000,000 3,149,790
Los Angeles USD,
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Los Angeles USD,
COP, Dr. Francisco Bravo Medical Facility, Refunding, 6.50%, 6/01/04 ............................... $ 3,040,000 $ 3,261,038
COP, Dr. Francisco Bravo Medical Facility, Refunding, 6.60%, 6/01/05 ............................... 1,145,000 1,226,306
COP, Dr. Francisco Bravo Medical Facility, Refunding, 6.60%, 6/01/06 ............................... 3,610,000 3,861,653
COP, Dr. Francisco Bravo Medical Facility, Refunding, 6.625%, 6/01/08 .............................. 8,505,000 9,065,565
Series A, FGIC Insured, 5.375%, 7/01/16 ............................................................ 5,000,000 4,931,750
Series A, FGIC Insured, 5.40%, 7/01/22 ............................................................. 14,525,000 14,043,932
Los Angeles Wastewater System Revenue,
Refunding, Series A, FGIC Insured, 6.00%, 12/01/12 ................................................. 15,000,000 15,709,800
Refunding, Series A, FGIC Insured, 6.00%, 12/01/18 ................................................. 25,665,000 26,248,365
Refunding, Series A, MBIA Insured, 5.70%, 6/01/20 .................................................. 65,445,000 65,690,419
Refunding, Series A, MBIA Insured, 5.80%, 6/01/21 .................................................. 35,505,000 35,859,340
Refunding, Series C, MBIA Insured, 5.60%, 6/01/20 .................................................. 31,540,000 31,460,835
Refunding, Series D, FGIC Insured, 6.00%, 11/01/14 ................................................. 8,000,000 8,363,120
Series A, FGIC Insured, 5.00%, 6/01/28 ............................................................. 8,245,000 7,359,652
Series A, MBIA Insured, 5.875%, 6/01/24 ............................................................ 45,400,000 46,006,544
Series B, AMBAC Insured, 6.00%, 6/01/22 ............................................................ 10,650,000 10,838,931
Series B, MBIA Insured, 5.70%, 6/01/23 ............................................................. 75,720,000 75,822,222
Lynwood RDA, Tax Allocation, Project Area, Series A, 6.50%, 7/01/13 ...................................... 6,430,000 6,605,346
Madera-Chowchilla Power Authority Hydroelectric Revenue, Refunding, 8.00%, 1/01/14 ....................... 2,235,000 2,430,093
Madera County COP, Valley Children's Hospital, MBIA Insured,
5.00%, 3/15/23 ..................................................................................... 14,500,000 13,040,140
5.75%, 3/15/28 ..................................................................................... 27,500,000 27,581,400
Pre-Refunded, 6.125%, 3/15/23 ...................................................................... 18,000,000 19,836,720
Madera USD, COP, 6.50%, 12/01/07 ......................................................................... 1,250,000 1,334,863
Marin County COP, Capital Improvement Project, Pre-Refunded, 6.625%, 8/01/06 ............................. 2,330,000 2,484,759
Martinez USD, Refunding, Series 1992, 6.00%,
8/01/06 ............................................................................................ 1,260,000 1,298,254
8/01/10 ............................................................................................ 1,265,000 1,302,368
Marysville COP, Capital Improvement Financing Project, 7.125%, 2/01/13 ................................... 1,110,000 1,167,531
Marysville Hospital Revenue, Fremont Rideout Health, Refunding, Series A, AMBAC Insured, 5.00%, 1/01/22 .. 5,000,000 4,514,850
Menlo Park CDA, MFHR, Gateway Project, Series A, FHA Insured, 8.25%, 12/01/28 ............................ 3,470,000 3,500,779
Merced Irrigation District COP, Water Facilities Project, 6.40%, 11/01/10 ................................ 3,580,000 3,821,006
Metropolitan Water District Revenue, Southern California Waterworks,
5.50%, 7/01/19 ..................................................................................... 81,315,000 80,343,286
5.00%, 7/01/20 ..................................................................................... 7,765,000 7,116,855
Series A, 5.00%, 7/01/26 ........................................................................... 60,890,000 54,534,302
Series A, 5.00%, 7/01/37 ........................................................................... 26,080,000 22,932,144
Series C, 5.00%, 7/01/37 ........................................................................... 24,390,000 21,446,127
Mid-Peninsula Regional Open Space District COP, Special District Association Finance Corp., 5.75%, 9/01/20 5,200,000 5,100,576
Mill Valley Revenue COP, Pre-Refunded, 7.10%, 12/01/20 ................................................... 2,750,000 2,911,563
Milpitas RDA, Tax Allocation, Redevelopment Project Area No. 1, MBIA Insured,
5.40%, 1/15/17 ..................................................................................... 12,155,000 11,966,233
5.50%, 1/15/24 ..................................................................................... 15,790,000 15,416,567
Modesto Health Facilities Revenue, Memorial Hospital Association,
Refunding, Series B, MBIA Insured, 5.25%, 6/01/21 .................................................. 2,360,000 2,231,474
Series B, MBIA Insured, 5.125%, 6/01/17 ............................................................ 1,000,000 948,170
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Modesto Irrigation District COP, Refunding and Capital Improvements, Series B, 5.30%, 7/01/22 ............ $ 4,860,000 $ 4,607,572
Modesto PFA Lease Revenue, Capital Improvements and Refinancing Project, AMBAC Insured, 5.125%, 9/01/33 .. 12,535,000 11,336,779
Mojave Water Agency COP, Supplemental Water Entitlement, MBIA Insured,
5.45%, 9/01/15 ..................................................................................... 6,150,000 6,149,631
5.55%, 9/01/22 ..................................................................................... 10,005,000 9,864,130
Montclair RDA, Tax Allocation,
Redevelopment Project No. IV, 6.90%, 10/01/22 ...................................................... 1,645,000 1,719,420
Redevelopment Project No. V, 6.90%, 10/01/22 ....................................................... 4,245,000 4,437,044
Monterey County COP, Natividad Medical Center Improvement Project, Series C, MBIA Insured, Pre-Refunded,
6.50%, 8/01/15 ..................................................................................... 3,500,000 3,941,455
6.60%, 8/01/23 ..................................................................................... 13,250,000 14,988,798
6.25%, 8/01/28 ..................................................................................... 13,385,000 14,902,725
Monterey Park RDA, Tax Allocation, Atlantic-Garvey Redevelopment Project No. 1, Refunding, 6.85%, 9/01/14 13,680,000 14,349,773
Moreno Valley Special Tax, Towngate Community Facilities 8, Refunding, Series A, FSA Insured, 5.875%,
12/01/15 ........................................................................................... 5,830,000 5,965,839
Moreno Valley USD, COP,
Land Acquisition, Series E, FSA Insured, Pre-Refunded, 6.70%, 9/01/11 .............................. 210,000 229,263
Land Acquisition, Series E, FSA Insured, Pre-Refunded, 6.75%, 9/01/27 .............................. 2,895,000 3,164,496
Land Acquisition, Series F, FSA Insured, Pre-Refunded, 6.75%, 9/01/27 .............................. 7,680,000 8,394,931
Palm Middle School, ETM, 7.00%, 9/01/01 ............................................................ 10,000 10,567
Palm Middle School, Pre-Refunded, 7.10%, 9/01/02 ................................................... 10,000 10,771
Palm Middle School, Pre-Refunded, 7.20%, 9/01/03 ................................................... 10,000 10,790
Palm Middle School, Pre-Refunded, 7.30%, 9/01/05 ................................................... 5,000 5,404
Refunding, FSA Insured, 5.60%, 3/01/17 ............................................................. 5,000,000 5,017,750
Refunding, FSA Insured, 5.70%, 3/01/27 ............................................................. 15,000,000 14,999,100
Mount Diablo USD, Special Tax, CFD No. 1, AMBAC Insured, 6.30%, 8/01/22 .................................. 5,000,000 5,240,800
Mountain View COP, Capital Improvement Financing Authority Revenue,
City Hall, MBIA Insured, 6.25%, 8/01/12 ............................................................ 3,110,000 3,257,943
City Hall/Community Theatre, MBIA Insured, 6.50%, 8/01/16 .......................................... 2,000,000 2,104,160
Mountain View School District COP, Santa Clara County Financing Project, Pre-Refunded,
6.75%, 4/01/07 ..................................................................................... 1,010,000 1,062,773
6.90%, 4/01/12 ..................................................................................... 1,430,000 1,504,374
Mountain View Shoreline Regional Park, Community Tax Allocation, Series A, MBIA Insured, 5.75%, 8/01/18 .. 9,605,000 9,672,331
Mountain View-Los Altos UHSD,
COP, Financing Project, Pre-Refunded, 7.40%, 8/01/16 ............................................... 2,175,000 2,348,826
Series B, 5.70%, 5/01/22 ........................................................................... 6,500,000 6,518,720
M-S-R Public Power Agency San Juan Project Revenue,
Refunding, Series F, AMBAC Insured, 6.00%, 7/01/20 ................................................. 10,750,000 10,999,830
Series E, MBIA Insured, 6.00%, 7/01/22 ............................................................. 8,490,000 8,571,249
Murrieta COP, Road Improvement Project, 6.00%, 4/01/27 ................................................... 8,600,000 8,497,230
Napa Housing Facility Revenue, Napa Park Apartments, Series A, GNMA Secured, 6.35%, 6/20/35 .............. 6,125,000 6,285,843
Napa Mortgage Revenue, Refunding, Creekside II Apartments Project, Series A, MBIA Insured, 6.625%, 7/01/25 2,000,000 2,070,660
National City Community Development Commission MFHR, Park Villas Apartments, Series A, GNMA Secured,
5.95%, 1/20/40 ........................................................................................ 10,455,000 10,469,219
Needles PFA Revenue, Tax Allocation, Redevelopment Project, Series A, 7.50%, 8/15/22 ..................... 1,580,000 1,628,790
Nevada County COP, Jail and Government Center Project, Refunding, FSA Insured, 5.875%, 10/01/19 .......... 6,275,000 6,347,037
Nevada Power Authority Revenue, Bowman Hydroelectric Project, Refunding, 7.50%, 5/01/13 .................. 7,025,000 7,446,360
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
North City West School Facilities Financing Authority Special Tax, CFD No. 1, Series C, AMBAC
Insured, 5.30%,
9/01/22 .......................................................................................... $10,000,000 $ 9,540,500
9/01/27 .......................................................................................... 9,900,000 9,349,461
Northern California Public Power Agency Revenue, Hydroelectric Project No. 1, Refunding, Series A,
MBIA Insured,
5.50%, 7/01/24 ................................................................................... 10,000,000 9,761,400
5.20%, 7/01/32 ................................................................................... 43,675,000 40,327,311
Northern California Transmission Revenue, California/Oregon Transmission Project, Series A, MBIA
Insured, 6.00%, 5/01/24 ............................................................................. 7,625,000 7,709,485
Norwalk Community Facilities Financing Authority Revenue, Tax Allocation, Projects No. 1 and 2,
Pre-Refunded, 8.00%, 12/01/19 ...................................................................... 14,720,000 15,114,349
Oakland COP, Oakland Museum, Refunding, Series A, AMBAC Insured, 6.00%, 4/01/12 ........................ 8,000,000 8,330,000
Oakland GO, Measure I, FGIC Insured, 5.85%, 12/15/22 ................................................... 12,085,000 12,289,962
Oakland HFR,
Issue D-1, 6.875%, 1/01/00 ....................................................................... 205,000 205,771
Issue D-1, 6.875%, 7/01/00 ....................................................................... 205,000 206,517
Issue D-1, 6.95%, 1/01/01 ........................................................................ 210,000 211,426
Issue D-1, 6.95%, 7/01/01 ........................................................................ 95,000 95,896
Issue D-1, 7.10%, 1/01/10 ........................................................................ 2,800,000 2,871,372
Issue D-2, 6.95%, 7/01/01 ........................................................................ 215,000 217,027
Issue D-2, 7.10%, 1/01/10 ........................................................................ 1,100,000 1,127,225
Issue D-2, 7.15%, 1/01/24 ........................................................................ 5,800,000 5,928,296
Oakland Joint Powers Financing Authority Lease Revenue, Oakland Administration Buildings,
AMBAC Insured, 5.75%,
8/01/21 .......................................................................................... 12,500,000 12,593,375
8/01/26 .......................................................................................... 19,500,000 19,565,130
Oakland Revenue, Oakland YMCA Project, Refunding, Pre-Refunded, 7.40%, 6/01/10 ......................... 5,405,000 5,646,820
Oceanside Building Authority Revenue, Refunding, 7.75%, 11/01/04 ....................................... 4,165,000 4,664,425
Oceanside COP,
Oceanside Civic Center Project, Refunding, MBIA Insured, 5.75%, 8/01/15 .......................... 5,000,000 5,110,000
Refunding, Series A, 6.375%, 4/01/12 ............................................................. 4,435,000 4,693,871
Refunding, Series A, 6.625%, 4/01/23 ............................................................. 9,000,000 9,084,420
Wastewater Systems Plan, Refunding, AMBAC Insured, 5.80%, 5/01/21 ................................ 4,500,000 4,544,505
Water System Project, Refunding, AMBAC Insured, 5.80%, 8/01/21 ................................... 4,750,000 4,798,545
Olivenhain Municipal Water District 1915 Act, AD No. 96-1, MBIA Insured,
5.375%, 9/02/17 .................................................................................. 2,845,000 2,791,969
5.45%, 9/02/27 ................................................................................... 11,105,000 10,870,573
Ontario Montclair School District COP,
Capital Projects, FSA Insured, 5.625%, 9/01/17 ................................................... 7,500,000 7,547,625
Series A, Pre-Refunded, 7.50%, 10/01/12 .......................................................... 1,735,000 1,831,640
Orange County Airport Revenue, Refunding, MBIA Insured, 5.625%, 7/01/12 ................................ 5,000,000 5,102,850
Orange County CFD, No. 87-4 Special Tax, Foothill Ranch, Pre-Refunded, 8.00%, 8/15/10 .................. 5,000,000 5,287,250
Orange County COP,
Civic Center Expansion Project, AMBAC Insured, Pre-Refunded, 6.00%, 8/01/21 ...................... 4,500,000 4,699,440
Juvenile Justice Center Facilities, Refunding, AMBAC Insured, 6.375%, 6/01/11 .................... 5,000,000 5,312,900
Orange County Development Agency Tax Allocation, Santa Ana Heights Area Project, Refunding,
6.125%, 9/01/23 .................................................................................. 6,500,000 6,520,280
Orange County Financing Authority Tax Allocation Revenue, Refunding, Series A, MBIA Insured, 6.50%,
9/01/21 .......................................................................................... 5,225,000 5,495,760
9/01/22 .......................................................................................... 8,000,000 8,411,520
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (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 $17,479,107
Series A, MBIA Insured, 5.80%, 7/01/16 ............................................................. 10,380,000 10,628,912
Orange County Recovery, Refunding, Series A, MBIA Insured, 5.75%, 6/01/15 ................................ 79,010,000 80,718,986
Orange County Sanitation District COP, 7.00%, 9/01/00 .................................................... 1,975,000 2,000,675
Orange County Transportation District COP, Business Acquisition Project, Pre-Refunded, 6.75%, 12/01/05 ... 2,865,000 2,996,246
Orange County Water District COP, Refunding, Series A,
5.50%, 8/15/14 ..................................................................................... 9,430,000 9,490,258
5.00%, 8/15/18 ..................................................................................... 5,000,000 4,625,550
Orange RDA, Tax Allocation Revenue, Northwest Redevelopment Project, Refunding, Series B, 5.70%, 10/01/23 8,530,000 8,301,737
Oroville PFA Revenue, Series A, AMBAC Insured, 6.30%, 9/15/20 ............................................ 12,150,000 12,919,824
Oroville Wyandotte Irrigation District Revenue, Hydroelectric Sly Creek Power, Refunding, 6.20%, 1/01/09 . 8,915,000 9,301,822
Oxnard Harbor District Revenue, ACA Insured, 5.60%, 8/01/19 .............................................. 10,820,000 10,261,147
Palm Desert 1915 Act, Limited Obligation, AD No. 92-1, Pre-Refunded, 7.60%, 9/02/12 ...................... 1,290,000 1,345,934
Palm Desert Financing Authority Lease Revenue, Blythe County Administrative Project, 6.625%, 8/01/26 ..... 5,020,000 5,152,428
Palm Desert Financing Authority Tax Allocation Revenue,
Project Area No. 1, Refunding, MBIA Insured, 5.625%, 4/01/23 ....................................... 13,000,000 12,924,470
Project Area No. 1, Series A, MBIA Insured, 6.625%, 4/01/23 ........................................ 1,200,000 1,272,996
Project Area No. 1, Series A, MBIA Insured, Pre-Refunded, 6.625%, 4/01/23 .......................... 4,140,000 4,472,069
Project Area No. 1, Series A, MBIA Insured, 5.95%, 4/01/24 ......................................... 15,075,000 15,412,529
Palm Springs COP, Multiple Capital Facilities Project, Refunding, AMBAC Insured, 5.75%, 4/01/27 .......... 11,570,000 11,611,883
Palm Springs Financing Authority Regional Airport Revenue, Tax Allocation, Series B, 6.875%, 8/01/21 ..... 2,230,000 2,323,437
Palmdale Civic Authority Revenue, Merged Redevelopment Project Areas,
Refunding, Series A, MBIA Insured, 6.15%, 9/01/24 .................................................. 4,730,000 4,951,364
Series A, MBIA Insured, Pre-Refunded, 6.15%, 9/01/24 ............................................... 6,850,000 7,544,796
Palmdale CRDA, Tax Allocation,
Merged Redevelopment Project, Refunding, MBIA Insured, 5.00%, 9/01/28 .............................. 17,500,000 15,614,725
Merged Redevelopment Project, Refunding, MBIA Insured, 5.00%, 9/01/34 .............................. 6,980,000 6,157,128
Series A, MBIA Insured, 5.75%, 9/01/27 ............................................................. 10,435,000 10,473,401
Palmdale School District COP, 7.40%, 8/01/2 .............................................................. 495,000 503,603
Palomar Community College District COP, Building Acquisition Project, Connie Lee Insured, Pre-Refunded,
6.75%, 10/01/19 ....................................................................................... 4,210,000 4,755,069
Panoche Water District COP, Pre-Refunded, 7.50%, 12/01/08 ................................................ 2,665,000 2,760,860
Paramount RDA, Tax Allocation, Custodial Receipts, MBIA Insured, 6.25%, 8/01/23 .......................... 22,070,000 23,209,033
Pasadena COP, Art Center College of Design, Connie Lee Insured, 6.50%, 12/01/19 .......................... 8,250,000 8,894,408
Pasadena Water Revenue, 6.00%, 7/01/13 ................................................................... 4,000,000 4,184,880
Perris PFA, Revenue,
Special Tax, Series A, ETM, 7.45%, 9/01/01 ......................................................... 205,000 206,499
Special Tax, Series A, ETM, 7.50%, 9/01/02 ......................................................... 235,000 236,610
Special Tax, Series A, ETM, 7.55%, 9/01/03 ......................................................... 270,000 271,793
Special Tax, Series A, ETM, 7.60%, 9/01/04 ......................................................... 305,000 306,900
Special Tax, Series A, ETM, 7.60%, 9/01/05 ......................................................... 325,000 326,758
Special Tax, Series A, ETM, 7.80%, 9/01/19 ......................................................... 3,555,000 3,572,171
Tax Allocation, Refunding, Series B, MBIA Insured, 6.35%, 8/15/17 .................................. 5,280,000 5,567,813
Tax Allocation, Refunding, Series C, 7.10%, 11/15/17 ............................................... 3,330,000 3,512,917
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (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 $ 3,262,810
Central and North Perris Redevelopment Project, Series B, Pre-Refunded, 7.875%, 10/01/14 ........... 4,535,000 4,985,053
Series 1991, 7.15%, 8/01/11 ........................................................................ 865,000 907,004
Series 1991, 7.20%, 8/01/21 ........................................................................ 2,040,000 2,129,576
Perris Special Tax,
CFD No. 8, Series A, ETM, 8.05%, 9/01/00 ........................................................... 65,000 67,628
CFD No. 8, Series A, ETM, 8.10%, 9/01/01 ........................................................... 85,000 91,523
CFD No. 8, Series A, ETM, 8.15%, 9/01/02 ........................................................... 100,000 111,184
CFD No. 8, Series A, Pre-Refunded, 8.30%, 9/01/18 .................................................. 6,040,000 7,109,624
CFD No. 91-1, 8.75%, 9/01/21 ....................................................................... 5,395,000 5,590,245
Petaluma Community Development Commission MFR, Park Lane Apartments, Series A, 6.875%, 11/20/34 .......... 4,800,000 5,032,272
Pioneers Memorial Healthcare District, Refunding, AMBAC Insured, 5.125%, 10/01/24 ........................ 7,500,000 6,854,700
Pittsburg PFA, Water Revenue, MBIA Insured, 5.50%, 6/01/27 ............................................... 2,980,000 2,897,275
Placentia COP, RDA, Refunding, Series A, 6.90%, 1/01/14 .................................................. 1,770,000 1,873,917
Pleasanton COP, Capital Improvements, 6.70%, 10/01/11 .................................................... 2,180,000 2,309,732
Pomona PFA, Revenue, Refunding, Series P, 5.75%, 10/01/15 ................................................ 6,490,000 6,436,393
Pomona RDA, Tax Allocation, Southwest Pomona Redevelopment Project, ETM, 11.45%, 1/01/07 ................. 12,475,000 15,583,022
Port Hueneme RDA, Tax Allocation, R-76 Project, Refunding, 6.50%, 5/01/23 ................................ 3,045,000 3,136,350
Port of Oakland Revenue, Series E, MBIA Insured,
6.25%, 11/01/05 .................................................................................... 1,525,000 1,630,042
6.30%, 11/01/06 .................................................................................... 1,050,000 1,122,251
6.40%, 11/01/07 .................................................................................... 500,000 535,080
6.40%, 11/01/22 .................................................................................... 11,495,000 12,128,260
Port of Oakland Special Facilities Revenue, Mitsui O.S.K. Lines Ltd., Series A,
6.70%, 1/01/07 ..................................................................................... 6,100,000 6,385,053
6.75%, 1/01/12 ..................................................................................... 4,890,000 5,124,671
6.80%, 1/01/19 ..................................................................................... 8,075,000 8,474,713
Porterville COP,
Infrastructure Financing Project, AMBAC Insured, 5.00%, 7/01/28 .................................... 10,430,000 9,308,566
Public Building Project, Refunding, AMBAC Insured, 6.30%, 10/01/18 ................................. 1,950,000 2,057,114
Poway COP, Royal Mobile Home Park Project,
Capital Improvement, FSA Insured, Pre-Refunded, 7.00%, 7/01/20 ..................................... 5,500,000 5,813,500
Refunding, FSA Insured, 5.875%, 8/01/15 ............................................................ 6,250,000 6,456,938
Refunding, FSA Insured, 6.00%, 8/01/20 ............................................................. 5,400,000 5,545,098
Refunding, FSA Insured, 6.00%, 8/01/28 ............................................................. 15,000,000 15,374,400
Poway RDA, Tax Allocation, Sub-Paguay Redevelopment Project, Refunding, FGIC Insured,
5.50%, 12/15/23 .................................................................................... 23,000,000 22,486,640
5.75%, 12/15/26 .................................................................................... 11,710,000 11,739,041
Puerto Rico Commonwealth GO, Public Improvement, 4.75%, 7/01/23 .......................................... 7,695,000 6,562,989
Puerto Rico Commonwealth Highway and Transportation Authority Revenue,
Series A, 5.00%, 7/01/38 ........................................................................... 89,975,000 76,963,715
Series Y, 5.00%, 7/01/36 ........................................................................... 63,000,000 55,026,090
Puerto Rico Electric Power Authority Power Revenue, Refunding, Series EE, 4.75%, 7/01/24 ................. 19,200,000 16,299,840
Puerto Rico Electric Power Authority Revenue, Series DD, 5.00%, 7/01/28 .................................. 23,250,000 20,252,843
Rancho Cucamonga, Palmdale, Potterville and Colton HFA, SFMR, Series 1986, GNMA Secured, 7.55%, 8/01/18 .. 4,300,000 4,466,711
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Rancho Cucamonga RDA, Tax Allocation, Rancho Redevelopment Project, Set-Aside Housing, MBIA Insured,
5.25%, 9/01/21 ....................................................................................... $ 8,330,000 $ 7,923,829
Rancho Murieta Community Services District 1915 Act, ID No. 1,
8.25%, 9/02/01 ................................................................................... 745,000 774,509
8.25%, 9/02/02 ................................................................................... 715,000 743,028
8.30%, 9/02/03 ................................................................................... 745,000 774,197
8.40%, 9/02/04 ................................................................................... 750,000 779,370
8.40%, 9/02/05 ................................................................................... 735,000 763,327
8.40%, 9/02/06 ................................................................................... 750,000 778,748
Redlands USD, COP, Series A, FSA Insured,
6.15%, 9/01/11 ................................................................................... 645,000 652,359
6.25%, 9/01/27 ................................................................................... 4,310,000 4,359,608
Redwood City MFHR, Redwood Plaza Project, Refunding, Series A, GNMA Secured, 8.25%, 9/01/26 ............ 3,795,000 3,801,869
Redwood City PFA, Local Agency Revenue, Series B, Pre-Refunded, 7.25%, 7/15/11 ......................... 3,750,000 4,034,813
Rialto COP,
FSA Insured, 5.75%, 2/01/22 ...................................................................... 2,715,000 2,732,267
Series 1989, Pre-Refunded, 7.50%, 11/01/01 ....................................................... 145,000 148,310
Series 1989, Pre-Refunded, 7.50%, 11/01/15 ....................................................... 3,165,000 3,237,257
Rialto RDA, Tax Allocation, Agua Mansa Redevelopment Project, Pre-Refunded, 6.75%, 3/01/24 ............. 3,500,000 3,897,180
Richmond Joint Powers Financing Authority Revenue, Series B, Pre-Refunded, 7.00%, 5/15/07 .............. 2,000,000 2,081,400
Richmond Revenue, West Contra Costa YMCA Project, Pre-Refunded, 7.75%, 6/01/17 ......................... 3,715,000 3,889,568
Ridgecrest COP, RDA, 7.60%, 3/01/13 .................................................................... 4,420,000 4,529,483
Ridgecrest RDA, Tax Allocation Revenue, Ridgecrest Redevelopment Project,
8.00%, 2/01/09 ................................................................................... 200,000 203,114
8.00%, 2/01/10 ................................................................................... 220,000 223,375
8.00%, 2/01/11 ................................................................................... 240,000 243,682
8.00%, 2/01/12 ................................................................................... 255,000 258,871
8.00%, 2/01/13 ................................................................................... 275,000 279,131
8.00%, 2/01/14 ................................................................................... 300,000 304,506
7.80%, 2/01/15 ................................................................................... 325,000 329,362
7.40%, 2/01/16 ................................................................................... 355,000 359,320
Riverside County Asset Leasing Corp. Leasehold Revenue, Hospital Project,
Series A, 6.375%, 6/01/09 ........................................................................ 23,000,000 24,276,500
Series A, 6.50%, 6/01/12 ......................................................................... 20,125,000 21,673,820
Series B, MBIA Insured, 5.00%, 6/01/19 ........................................................... 18,865,000 17,377,117
Riverside County Board of Education COP, Capital Appreciation Financing Projects, Series A, 6.65%,
11/01/17 ............................................................................................. 7,945,000 8,328,664
Riverside County CFD, Special Tax, No. 86-1,
8.75%, 9/01/16 ................................................................................... 13,780,000 13,936,816
Menifee Village Project, 7.875%, 9/01/11 ......................................................... 23,085,000 23,134,171
Riverside County COP,
Capital Projects, Series A, Pre-Refunded, 6.875%, 11/01/09 ....................................... 4,975,000 5,360,612
Desert Justice Facility Project, MBIA Insured, Pre-Refunded, 6.00%, 12/01/17 ..................... 4,775,000 5,205,610
Desert Justice Facility Project, MBIA Insured, Pre-Refunded, 6.25%, 12/01/21 ..................... 4,625,000 5,095,178
Family Law Court Project, MBIA Insured, 5.75%, 11/01/27 .......................................... 5,295,000 5,314,803
Historic Courthouse, MBIA Insured, 5.875%, 11/01/27 .............................................. 8,640,000 8,787,312
Riverside County Flood Control and Water Conservation District Elsinore Valley AD, Zone 3, 7.875%,
9/01/03 .......................................................................................... 165,000 185,927
9/01/04 .......................................................................................... 180,000 206,977
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Riverside County Flood Control and Water Conservation District Elsinore Valley
AD, Zone 3, 7.875%, (cont.)
9/01/05 .......................................................................................... $ 190,000 $ 221,848
9/01/06 .......................................................................................... 205,000 242,991
9/01/07 .......................................................................................... 225,000 270,056
9/01/08 .......................................................................................... 240,000 289,663
9/01/09 .......................................................................................... 260,000 316,225
9/01/10 .......................................................................................... 280,000 341,989
9/01/11 .......................................................................................... 305,000 374,275
9/01/12 .......................................................................................... 325,000 401,450
9/01/13 .......................................................................................... 350,000 433,531
9/01/14 .......................................................................................... 380,000 470,087
9/01/15 .......................................................................................... 410,000 507,830
9/01/16 .......................................................................................... 440,000 546,234
9/01/17 .......................................................................................... 475,000 591,803
Riverside County Housing Authority Revenue,
Breezewood Apartment Project, Refunding, Series C, 6.40%, 6/01/28 ................................ 5,025,000 4,694,657
Riverside Apartment Project, Issue A, Pre-Refunded, 7.875%, 11/01/19 ............................. 6,750,000 6,905,588
Riverside County PFA, Tax Allocation Revenue, Redevelopment Projects, Series A, 5.625%, 10/01/33 ....... 9,225,000 8,513,384
Riverside County PFA COP,
5.75%, 5/15/19 ................................................................................... 3,500,000 3,387,895
5.80%, 5/15/29 ................................................................................... 14,230,000 13,591,073
Riverside County SFMR,
Series A, GNMA Secured, 7.20%, 10/01/24 .......................................................... 925,000 929,264
Series B, GNMA Secured, 7.60%, 11/01/19 .......................................................... 475,000 490,870
Riverside MFHR,
Birchwood Park Apartments, Series A, FNMA Insured, 6.50%, 1/01/18 ................................ 2,200,000 2,247,718
Palm Shadows Apartments, Series A, FNMA Insured, 6.50%, 1/01/18 .................................. 4,010,000 4,096,977
Riverside RDA, Tax Allocation, Merged Redevelopment Project, Series A, MBIA Insured, 5.625%, 8/01/23 ... 6,000,000 5,964,420
Riverside USD, COP, Series B, FSA Insured, 7.375%, 9/01/26 ............................................. 5,490,000 5,946,219
Rocklin USD, CFD Special Tax No. 1, Pre-Refunded, 7.70%, 9/01/12 ....................................... 6,085,000 6,427,342
Rohnert Park HFAR, Rancho Feliz Mobile Home Park, FSA Insured, 5.375%, 12/01/26 ........................ 8,380,000 8,005,330
Roseville 1915 Act,
North Roseville Rocklin District No. 88-3, Refunding, 8.00%, 9/02/00 ............................. 115,000 117,772
North Roseville Rocklin District No. 88-3, Refunding, 8.00%, 9/02/01 ............................. 125,000 129,723
North Roseville Rocklin District No. 88-3, Refunding, 8.10%, 9/02/02 ............................. 130,000 134,892
North Roseville Rocklin District No. 88-3, Refunding, 8.15%, 9/02/03 ............................. 145,000 150,456
North Roseville Rocklin District No. 88-3, Refunding, 8.20%, 9/02/04 ............................. 155,000 160,800
North Roseville Rocklin District No. 88-3, Refunding, 8.20%, 9/02/05 ............................. 170,000 176,290
North Roseville Rocklin District No. 88-3, Refunding, 8.20%, 9/02/06 ............................. 180,000 186,660
North Roseville Rocklin District No. 88-3, Refunding, 8.25%, 9/02/07 ............................. 200,000 207,416
North Roseville Rocklin District No. 88-3, Refunding, 8.25%, 9/02/08 ............................. 215,000 222,910
North Roseville Rocklin District No. 88-3, Refunding, 8.25%, 9/02/09 ............................. 185,000 191,814
Rocky Ridge Harding District No. 88-4, Refunding, 8.00%, 9/02/00 ................................. 245,000 250,905
Rocky Ridge Harding District No. 88-4, Refunding, 8.00%, 9/02/01 ................................. 260,000 269,838
Rocky Ridge Harding District No. 88-4, Refunding, 8.10%, 9/02/02 ................................. 275,000 285,348
Rocky Ridge Harding District No. 88-4, Refunding, 8.15%, 9/02/03 ................................. 305,000 316,477
Rocky Ridge Harding District No. 88-4, Refunding, 8.20%, 9/02/04 ................................. 325,000 337,162
Rocky Ridge Harding District No. 88-4, Refunding, 8.20%, 9/02/05 ................................. 350,000 362,950
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Roseville Special Tax,
CFD No. 2, Pre-Refunded, 8.00%, 9/01/06 ............................................................ $ 355,000 $ 375,913
CFD No. 2, Pre-Refunded, 8.25%, 9/01/21 ............................................................ 7,165,000 7,602,925
North Central CFD No. 1, Pre-Refunded, 8.00%, 11/01/02 ............................................. 1,725,000 1,896,983
North Central CFD No. 1, Pre-Refunded, 8.10%, 11/01/03 ............................................. 1,860,000 2,049,106
North Central CFD No. 1, Pre-Refunded, 8.40%, 11/01/10 ............................................. 10,000,000 11,075,900
North Central CFD No. 1, Pre-Refunded, 8.60%, 11/01/17 ............................................. 12,000,000 13,338,360
Rubidoux Community Services District COP, Water System Improvement Project, AMBAC Insured, Pre-Refunded,
6.25%, 12/01/24 .......................................................................................... 5,450,000 5,909,381
Sacramento 1915 Act, North Natomas AD No. 88-3,
8.20%, 9/02/10 ..................................................................................... 790,000 783,190
8.20%, 9/02/11 ..................................................................................... 1,755,000 1,732,554
8.25%, 9/02/12 ..................................................................................... 2,265,000 2,266,495
8.25%, 9/02/13 ..................................................................................... 2,455,000 2,424,804
8.25%, 9/02/14 ..................................................................................... 2,650,000 2,616,213
Sacramento Area Council of Governments COP, Sacog Administrative Building Project, Pre-Refunded,
7.125%, 7/01/16 .......................................................................................... 1,500,000 1,568,790
Sacramento City Financing Authority Revenue, Series 1991,
6.60%, 11/01/05 .................................................................................... 1,300,000 1,378,429
6.70%, 11/01/11 .................................................................................... 920,000 971,097
Sacramento County Airport System Revenue,
Series A, MBIA Insured, 5.90%, 7/01/24 ............................................................. 6,875,000 6,982,113
Series B, MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 ............................................... 6,195,000 6,758,683
Sub Series D, MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 ........................................... 10,000,000 10,909,900
Sacramento County CFD, Special Tax, Improvement Area 1, Series 1990, Pre-Refunded,
8.20%, 12/01/10 .................................................................................... 2,250,000 2,409,930
8.25%, 12/01/20 .................................................................................... 7,610,000 8,155,180
Sacramento County COP,
Cherry Island Golf Course Project, Refunding, Series B, 6.80%, 7/01/12 ............................. 2,325,000 2,381,428
Cherry Island Golf Course Project, Series B, 6.80%, 7/01/18 ........................................ 3,500,000 3,583,755
Parking Facility Project, Refunding, Series A, 6.80%, 7/01/12 ...................................... 1,495,000 1,531,284
Public Facilities Project, Coroner/Crime Laboratory, AMBAC Insured, 6.40%, 10/01/19 ................ 11,000,000 12,043,790
Public Facilities Project, Coroner/Crime Laboratory, AMBAC Insured, 6.40%, 10/01/24 ................ 29,500,000 32,299,255
Sacramento MUD, Electric Revenue,
Refunding, Series D, MBIA Insured, 5.25%, 11/15/20 ................................................. 10,000,000 9,545,300
Refunding, Series L, MBIA Insured, 5.125%, 7/01/22 ................................................. 27,450,000 25,417,053
Refunding, Series Z, FGIC Insured, 6.25%, 7/01/04 .................................................. 5,740,000 6,057,594
Refunding, Series Z, FGIC Insured, 6.35%, 7/01/05 .................................................. 3,000,000 3,165,240
Series I, MBIA Insured, 6.00%, 1/01/24 ............................................................. 4,500,000 4,609,845
Series J, AMBAC Insured, 5.60%, 8/15/24 ............................................................ 14,715,000 14,558,138
Sub. Lien, Refunding, 8.00%, 11/15/10 .............................................................. 16,110,000 16,158,652
Sacramento RDA, Tax Allocation,
Merged Downtown Redevelopment Project, Series A, MBIA Insured, Pre-Refunded, 6.50%, 11/01/13 ....... 2,140,000 2,250,017
Series A, MBIA Insured, 6.50%, 11/01/13 ............................................................ 360,000 374,652
Sacramento Regional Transit District COP, Series A, 6.375%,
3/01/04 ............................................................................................ 1,000,000 1,066,370
3/01/05 ............................................................................................ 1,100,000 1,168,838
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Sacramento-Yolo Port District Revenue, Port Facilities, Refunding, Series A, 7.25%, 7/01/13 ............ $11,645,000 $12,262,651
San Bernardino 1915 Act, AD No. 961, Refunding,
7.60%, 9/02/02 ................................................................................... 855,000 876,760
7.65%, 9/02/03 ................................................................................... 920,000 950,277
7.70%, 9/02/04 ................................................................................... 990,000 1,022,373
7.75%, 9/02/05 ................................................................................... 1,065,000 1,099,378
San Bernardino City USD, COP, Financing Project, FSA Insured, 4.75%, 10/01/18 .......................... 8,000,000 8,000,000
San Bernardino County COP,
Medical Center Financing Project, Refunding, 5.00%, 8/01/26 ...................................... 15,045,000 13,067,786
Medical Center Financing Project, Refunding, MBIA Insured, 5.00%, 8/01/28 ........................ 55,065,000 48,787,039
Medical Center Financing, Series A, MBIA Insured, 5.50%, 8/01/22 ................................. 40,830,000 39,740,247
Medical Center Financing, Series A, MBIA Insured, Pre-Refunded, 5.50%, 8/01/22 ................... 27,400,000 29,459,384
West Valley Detention Center Project, MBIA Insured, 6.25%, 11/01/04 .............................. 3,705,000 3,993,545
West Valley Detention Center Project, MBIA Insured, 6.35%, 11/01/05 .............................. 3,935,000 4,239,648
West Valley Detention Center Project, MBIA Insured, 6.40%, 11/01/06 .............................. 4,185,000 4,508,668
West Valley Detention Center Project, MBIA Insured, 6.50%, 11/01/12 .............................. 20,000,000 21,448,000
West Valley Detention Center Project, MBIA Insured, 6.20%, 11/01/25 .............................. 9,275,000 9,739,307
San Bernardino County Mortgage Revenue, Don Miguel Apartments Project, Refunding, MBIA Insured,
6.00%, 9/01/03 ................................................................................... 210,000 215,857
San Bernardino County SFMR,
GNMA Secured, 7.50%, 12/01/07 .................................................................... 380,000 398,327
GNMA Secured, 7.65%, 6/01/23 ..................................................................... 1,810,000 1,893,170
Series A, GNMA Secured, FNMA Insured, 6.20%, 5/01/21 ............................................. 600,000 590,856
Series B, 5.40%, 5/01/25 ......................................................................... 7,945,000 7,443,432
San Bernardino Joint Powers Financing Authority Lease Revenue, City Hall Project, Refunding,
MBIA Insured,
5.60%, 1/01/15 ................................................................................... 3,215,000 3,249,336
5.70%, 1/01/23 ................................................................................... 6,315,000 6,327,883
San Bernardino Joint Powers Financing Authority Revenue COP, Police Station Financing Project,
6.60%, 4/01/20 ................................................................................... 4 ,715,000 4,929,674
San Bernardino Joint Powers Financing Authority Revenue, Tax Allocation,
Central City Merged Project, Refunding, Series A, ETM, 6.75%, 11/01/00 ........................... 450,000 465,147
Central City Merged Project, Refunding, Series A, ETM, 6.90%, 11/01/01 ........................... 480,000 508,579
Central City Merged Project, Series A, Pre-Refunded, 7.00%, 11/01/02 ............................. 510,000 550,790
Central City Merged Project, Series A, Pre-Refunded, 7.00%, 11/01/03 ............................. 550,000 593,989
Central City Merged Project, Series A, Pre-Refunded, 7.00%, 11/01/04 ............................. 585,000 631,788
Central City Merged Project, Series A, Pre-Refunded, 7.05%, 11/01/05 ............................. 625,000 675,600
Central City Merged Project, Series A, Pre-Refunded, 7.05%, 11/01/06 ............................. 670,000 724,243
Central City Merged Project, Series A, Pre-Refunded, 7.05%, 11/01/07 ............................. 720,000 778,291
Central City Merged Project, Series A, Pre-Refunded, 7.10%, 11/01/20 ............................. 15,585,000 16,862,191
Central City Merged Project, Series B, Pre-Refunded, 7.50%, 11/01/20 ............................. 3,000,000 3,266,370
Refunding, Series A, FSA Insured, 5.75%, 10/01/15 ................................................ 9,000,000 9,202,140
Refunding, Series A, FSA Insured, 5.75%, 10/01/25 ................................................ 19,915,000 19,990,677
Tri-City Redevelopment Project, Series B, Pre-Refunded, 7.60%, 1/01/08 ........................... 1,695,000 1,745,358
San Bernardino Municipal Water Department COP, FGIC Insured, 6.25%, 2/01/12 ............................ 905,000 944,965
San Carlos Mortgage Revenue, Elms Project, FHA Insured, 6.875%, 8/01/37 ................................ 8,465,000 8,840,084
San Diego County COP, MBIA Insured, 5.00%, 8/15/28 ..................................................... 26,000,000 23,034,440
San Diego County Regional Transportation Commission Sales Tax Revenue, Series A, ETM, 6.00%, 4/01/08 ... 1,250,000 1,307,538
San Diego Housing Authority Revenue, President John Adams, Series B, GNMA Secured, 5.70%, 10/20/33 ..... 9,137,000 8,882,809
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
San Diego IDR, San Diego Gas and Electric Co. Project, Series A, 6.40%, 9/01/18 .......................... $19,800,000 $20,965,824
San Diego Public Facilities Financing Authority Sewer Revenue, FGIC Insured,
5.00%, 5/15/20 ..................................................................................... 9,500,000 8,709,885
5.00%, 5/15/25 ..................................................................................... 22,400,000 20,133,344
Series A, 5.25%, 5/15/27 ........................................................................... 18,805,000 17,633,637
Series B, 5.25%, 5/15/22 ........................................................................... 5,200,000 4,929,600
Series B, 5.25%, 5/15/27 ........................................................................... 6,175,000 5,790,359
San Diego RDA, Tax Allocation, Horton Project, Refunding, Series A, FSA Insured, 6.00%, 11/01/15 ......... 5,000,000 5,249,300
San Diego SFMR, Issue A, 9.20%, 7/15/16 .................................................................. 35,000 36,580
San Diego Special Tax, CFD No. 1, Series A, Pre-Refunded, 8.50%, 9/01/16 ................................. 28,845,000 31,776,517
San Elijo Joint Powers Authority Revenue, Water Pollution Control Facilities, Refunding, FGIC Insured,
5.00%, 3/01/20 ........................................................................................... 5,000,000 4,586,400
San Francisco BART District Sales Tax Revenue, FGIC Insured,
a 5.50%, 7/01/26 ..................................................................................... 6,795,000 6,608,953
a 5.50%, 7/01/34 ..................................................................................... 11,790,000 11,382,066
Pre-Refunded, 6.60%, 7/01/12 ....................................................................... 1,440,000 1,533,341
San Francisco City and County Airport Commission International Airport Revenue,
Issue 6, AMBAC Insured, 6.50%, 5/01/18 ............................................................. 2,500,000 2,668,050
Issue 6, AMBAC Insured, 6.60%, 5/01/24 ............................................................. 13,250,000 14,165,973
Issue 9A, FGIC Insured, 5.90%, 5/01/25 ............................................................. 46,415,000 46,587,664
Issue 9B, Second Series, FGIC Insured, Pre-Refunded, 6.00%, 5/01/25 ................................ 10,060,000 10,962,784
Issue 12-A, Second Series, 5.90%, 5/01/26 .......................................................... 45,000,000 45,024,750
Issue 15A, Second Series, FSA Insured, 5.00%, 5/01/28 .............................................. 41,650,000 36,449,165
Issue 16A, Second Series, FSA Insured, 5.125%, 5/01/23 ............................................. 24,635,000 22,335,815
Issue 16A, Second Series, FSA Insured, 5.00%, 5/01/29 .............................................. 37,805,000 33,021,911
Issue 22, Second Series, AMBAC Insured, 4.75%, 5/01/23 ............................................. 13,230,000 11,231,079
Issue 22, Second Series, AMBAC Insured, 4.75%, 5/01/29 ............................................. 44,130,000 36,640,256
Second Series, Issue 18A, FGIC Insured, 5.00%, 5/01/29 ............................................. 8,800,000 7,686,624
San Francisco City and County COP, San Francisco Courthouse Project, FSA Insured, 5.875%, 4/01/21 ........ 2,810,000 2,858,444
San Francisco City and County Public Utilities Commission Water Revenue,
Refunding, Series A, 6.50%, 11/01/09 ............................................................... 4,000,000 4,282,440
Series A, 5.00%, 11/01/21 .......................................................................... 5,000,000 4,511,100
San Francisco City and County RDA,
Hotel Tax Revenue, FSA Insured, 6.75%, 7/01/25 ..................................................... 315,000 341,706
Hotel Tax Revenue, FSA Insured, Pre-Refunded, 6.75%, 7/01/25 ....................................... 9,100,000 10,232,313
Lease Revenue, George R. Moscone Center, Refunding, Series 1992, 5.50%, 7/01/18 .................... 22,170,000 21,711,303
MFHR, 1045 Mission Apartments, Series C, GNMA Secured, 5.35%, 12/20/40 ............................. 7,715,000 7,060,537
Mortgage Revenue, Refunding, Series A, MBIA Insured, 6.65%, 7/01/24 ................................ 5,645,000 5,646,919
San Francisco City and County Revenue, Irwin Memorial Blood Center, Series A, 6.80%, 12/01/21 ............ 3,000,000 3,157,050
San Gabriel Valley Schools Financing Authority Revenue,
Oxnard Union High School, Pre-Refunded, 6.50%, 3/01/18 ............................................. 3,620,000 3,944,316
Oxnard Union High School, Pre-Refunded, 6.60%, 3/01/24 ............................................. 4,145,000 4,529,366
Pomona USD Financing, 5.80%, 2/01/26 ............................................................... 5,150,000 5,149,537
Series A, 7.70%, 11/01/19 .......................................................................... 1,765,000 1,803,053
San Gorgonio Memorial Health Care District Health Facility Revenue, Pre-Refunded, 6.375%, 6/01/08 ........ 1,815,000 1,979,439
San Joaquin Area Flood Control Agency 1915 Act, Flood Protection and Restoration Assessment, FSA Insured,
6.00%, 9/02/14 ..................................................................................... 8,220,000 8,494,712
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
San Joaquin County COP, General Hospital Project, Pre-Refunded,
6.25%, 9/01/13 ................................................................................... $ 32,880,000 $ 35,904,631
6.625%, 9/01/20 .................................................................................. 36,500,000 40,346,370
San Joaquin County Special Tax, CFD No. 8,
7.625%, 9/01/10 .................................................................................. 1,420,000 1,427,696
7.75%, 9/01/20 ................................................................................... 2,990,000 3,016,581
San Joaquin Hills Transportation Corridor Agency Toll Road Revenue,
Refunding, Series A, 5.50%, 1/15/28 .............................................................. 247,300,000 233,423,997
Refunding, Series A, MBIA Insured, 5.375%, 1/15/29 ............................................... 91,470,000 87,252,318
Refunding, Series A, MBIA Insured, 5.25%, 1/15/30 ................................................ 28,000,000 26,113,920
Senior Lien, 5.00%, 1/01/33 ...................................................................... 82,040,000 70,275,464
Senior Lien, Pre-Refunded, 7.00%, 1/01/30 ........................................................ 85,535,000 94,479,395
Senior Lien, Pre-Refunded, 6.75%, 1/01/32 ........................................................ 64,320,000 70,563,542
San Jose Airport Revenue, Refunding, MBIA Insured, 5.75%, 3/01/16 ...................................... 13,600,000 13,724,440
San Jose Financing Authority Revenue, Convention Center Project,
Refunding, Series C, 6.40%, 9/01/17 .............................................................. 16,100,000 16,844,947
Series C, 6.40%, 9/01/22 ......................................................................... 55,550,000 58,058,083
San Jose RDA,
MFHR, Miraido Village, Series A, GNMA Secured, 5.75%, 7/20/38 .................................... 7,155,000 6,970,186
Tax Allocation, Housing, Set-Aside Merged Area, Series E, MBIA Insured, 5.85%, 8/01/27 ........... 7,325,000 7,329,688
(a) Tax Allocation, Merged Area Redevelopment Project, 5.25%, 8/01/29 ................................ 7,000,000 6,456,240
Tax Allocation, Merged Area Redevelopment Project, AMBAC Insured, 5.00%, 8/01/31 ................. 4,000,000 3,542,640
Tax Allocation, Merged Area Redevelopment Project, MBIA Insured, 5.00%, 8/01/21 .................. 35,235,000 32,133,263
Tax Allocation, Merged Area Redevelopment Project, MBIA Insured, 5.625%, 8/01/28 ................. 24,135,000 23,878,204
Tax Allocation, Merged Area Redevelopment Project, Refunding, MBIA Insured, 5.00%, 8/01/20 ....... 35,665,000 32,681,979
San Leandro RDA, RMR, Pre-Refunded, 11.25%, 4/01/13 .................................................... 65,000 81,791
San Luis Obispo County COP, Jail Expansion Project,
6.75%, 10/01/16 .................................................................................. 1,830,000 1,888,816
6.80%, 10/01/21 .................................................................................. 1,475,000 1,522,554
San Marcos PFA Revenue, Series A, 6.25%, 9/02/22 ....................................................... 25,000,000 25,863,250
San Marcos Public Facilities Authority Revenue,
Capital Improvement, 8.25%, 1/01/19 .............................................................. 17,065,000 17,651,183
Civic Center, Mission Blvd. Project, Refunding and Improvement, Series A, 6.15%, 8/01/13 ......... 11,670,000 11,810,040
Civic Center, Mission Blvd. Project, Refunding and Improvement, Series A, 6.20%, 8/01/22 ......... 7,895,000 7,975,371
Rancheros Mobilehome Park Project, 7.00%, 10/01/24 ............................................... 660,000 686,829
Refunding, 5.80%, 9/01/18 ........................................................................ 4,750,000 4,539,860
Tax Allocation, Refunding, Series A, FSA Insured, 5.50%, 8/01/23 ................................. 18,000,000 17,601,120
San Marcos USD, School Facilities ID No. 1, AMBAC Insured, 5.80%, 11/01/14 ............................. 5,000,000 5,188,950
San Mateo County Joint Powers Authority Lease Revenue, Capital Projects, Series A, FSA Insured,
5.125%, 7/15/28 .................................................................................. 4,005,000 3,654,482
Pre-Refunded, 5.75%, 7/15/27 ..................................................................... 9,000,000 9,786,960
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 .................................................. 25,445,000 27,540,141
San Mateo Flood Control District COP, Colma Creek Flood Control Zone, MBIA Insured, 5.125%, 8/01/32 .... 10,145,000 9,185,384
San Mateo RDA, Tax Allocation, Merged Area, Series A, 5.70%, 8/01/27 ................................... 6,330,000 6,032,933
San Pablo RDA, Tax Allocation, Merged Project Area, FGIC Insured, 6.25%, 12/01/19 ...................... 3,500,000 3,725,960
San Rafael RDA, Tax Allocation, Central San Rafael Redevelopment, Refunding, FGIC Insured, 6.45%,
12/01/17 ......................................................................................... 6,740,000 7,169,405
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
San Rafael Sanitation District COP, Waste Water Facilities Financing, 6.80%, 8/01/11 ................... $ 2,200,000 $ 2,303,840
San Ramon COP, Capital Improvement Projects, Series 1993, 6.00%, 3/01/18 ............................... 1,730,000 1,748,148
San Ramon PFA, Tax Allocation Revenue,
MBIA Insured, 5.30%, 2/01/28 ..................................................................... 19,610,000 18,381,826
Pre-Refunded, 6.90%, 2/01/24 ..................................................................... 6,140,000 6,939,612
Refunding, 6.90%, 2/01/24 ........................................................................ 6,910,000 7,399,297
San Ramon Valley COP, Fire Protection District, Financing Corp., Refunding, 6.00%, 7/01/19 ............. 6,275,000 6,396,108
San Ramon Valley USD, COP,
Measure A, Capital Project, Series A, 5.95%, 10/01/01 ............................................ 6,925,000 7,198,122
Pre-Refunded, 7.70%, 2/01/10 ..................................................................... 6,000,000 6,581,400
Refunding, 7.55%, 2/01/04 ........................................................................ 6,505,000 6,571,221
Refunding, Series 1992, 7.00%, 2/01/22 ........................................................... 20,210,000 21,352,876
Series A, 6.35%, 10/01/01 ........................................................................ 11,435,000 11,730,252
Santa Ana COP, Parking Facilities Project, Refunding, Series A, AMBAC Insured, 6.125%, 6/01/16 ......... 2,070,000 2,147,232
Santa Ana Financing Authority Water Revenue, MBIA Insured, 6.125%, 9/01/24 ............................. 5,000,000 5,160,550
Santa Ana HMR, Series A, FGIC Insured, 9.50%, 6/01/12 .................................................. 40,000 40,107
Santa Barbara COP,
California Health Facilities, Loan Program, 7.65%, 5/01/15 ....................................... 1,675,000 1,734,144
Harbor Project, Refunding, 6.75%, 10/01/27 ....................................................... 8,090,000 8,594,897
Santa Barbara Housing Authority Revenue, Refunding and Acquisition, 6.25%, 11/15/20 .................... 5,955,000 5,647,603
Santa Barbara SFMR, GNMA Secured,
7.625%, 10/01/10 ................................................................................. 200,000 206,836
7.65%, 10/01/23 .................................................................................. 580,000 597,481
Santa Clara County COP, Terraces of Los Gatos Project, Pre-Refunded, 6.90%, 3/01/18 .................... 4,000,000 4,239,280
Santa Clara County Financing Authority Lease Revenue, Valley Medical Center Facilities, Replacement
Project, Series A, AMBAC Insured, Pre-Refunded, 6.75%, 11/15/20 ...................................... 13,000,000 14,713,660
Santa Clara County MFHR,
Don de Dios Apartments, Series A, GNMA Secured, 5.50%, 5/20/40 ................................... 4,050,000 3,789,221
Village Avante Apartments, Series A, GNMA Secured, 5.50%, 5/20/40 ................................ 6,750,000 6,315,368
Santa Clara Housing Authority MFHR,
Arastradero Park Apartments Project, Series A, GNMA Secured, 6.65%, 5/20/35 ...................... 6,465,000 6,832,212
Elana Gardens Apartments Project, Series A, GNMA Secured, 6.40%, 6/20/35 ......................... 5,625,000 5,800,894
Sierra Vista I Apartments Project, Series A, GNMA Secured, 6.65%, 6/20/35 ........................ 3,860,000 4,081,332
Santa Clara Valley Water District COP, Refunding and Improvement, Series A, FGIC Insured,
6.00%, 2/01/24 ................................................................................... 17,000,000 17,419,900
Santa Clarita COP, Refunding,
GNMA Secured, 5.875%, 5/20/26 .................................................................... 16,130,000 16,195,810
MBIA Insured, 5.00%, 10/01/21 .................................................................... 5,105,000 4,654,280
Santa Cruz City School District COP, Education Center Financing Project, Pre-Refunded, 7.00%, 5/01/24 .. 3,150,000 3,556,980
Santa Cruz County Housing Authority MFHR, Series B, FNMA Insured, 7.75%, 7/01/23 ....................... 9,230,000 9,512,623
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 7,050,330
Santa Maria Bonita School District COP, MBIA Insured,
7.00%, 3/01/16 ................................................................................... 480,000 504,821
Pre-Refunded, 7.00%, 3/01/16 ..................................................................... 2,270,000 2,410,490
Santa Maria COP, Revenue, Marian Medical Center, Pre-Refunded, 6.75%, 9/01/22 .......................... 3,600,000 3,929,904
Seal Beach RDA, Sub. Lien, Tax Allocation Revenue, Riverfront, Refunding, Series A, 6.70%, 9/01/13 ..... 2,880,000 2,905,373
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Shafter Joint Powers Financing Authority Lease Revenue, Community Correctional Facility Project,
Series A,
5.95%, 1/01/11 ................................................................................... $ 1,880,000 $ 1,939,070
6.05%, 1/01/17 ................................................................................... 5,135,000 5,192,358
Shasta Joint Powers Financing Authority Lease Revenue, Courthouse County Improvement Project,
Series A, Pre-Refunded,
6.60%, 6/01/12 ................................................................................... 1,000,000 1,082,030
6.70%, 6/01/23 ................................................................................... 2,500,000 2,711,300
Sierra View Local Hospital District Revenue, Insured Health Facilities, Pre-Refunded, 6.40%, 3/01/22 ... 15,000,000 16,061,250
Simi Valley SFRMR, Series A, GNMA Secured, FNMA Insured, 7.70%, 3/01/25 ................................ 595,000 613,862
Snowline Joint USD, COP, Pre-Refunded, 7.25%, 4/01/18 .................................................. 1,000,000 1,092,390
Soledad RDA, Tax Allocation, Soledad Redevelopment Project, Pre-Refunded, 7.40%, 11/01/12 .............. 3,855,000 4,294,933
Sonoma County Office of Education COP, Series 1990, Pre-Refunded, 7.375%, 7/01/20 ...................... 1,745,000 1,828,167
South Gate PFA Revenue, Tax Allocation, South Gate Redevelopment Project No. 1, AMBAC Insured,
5.875%, 9/01/24 ...................................................................................... 8,505,000 8,607,911
South Napa Waste Management Authority Revenue, Solid Waste Transfer Facilities Project, 6.50%, 2/15/14 . 4,500,000 4,657,905
South Orange County PFA, Special Tax Revenue,
Foothill Area, Series C, FGIC Insured, 5.75%, 8/15/18 ............................................ 5,000,000 5,047,500
Senior Lien, Refunding, Series A, MBIA Insured, 6.00%, 9/01/18 ................................... 18,850,000 19,337,650
South San Francisco 1915 Act, Gateway AD No. ST-82-2, 8.00%,
9/02/00 .......................................................................................... 1,455,000 1,489,673
9/02/01 .......................................................................................... 1,570,000 1,627,117
9/02/02 .......................................................................................... 1,675,000 1,736,406
Southern California HFA SFMR,
GNMA Secured, 7.625%, 10/01/22 ................................................................... 2,730,000 2,784,163
GNMA Secured, 7.75%, 3/01/24 ..................................................................... 3,720,000 3,835,432
Series A, GNMA Secured, 6.75%, 9/01/22 ........................................................... 620,000 639,654
Series B, GNMA Secured, 6.90%, 10/01/24 .......................................................... 1,050,000 1,086,078
Southern California Public Power Authority Power Project Revenue,
6.75%, 7/01/13 ................................................................................... 10,000,000 11,286,200
Hydroelectric-Hoover Uprating, Refunding, 6.00%, 10/01/17 ........................................ 7,795,000 7,905,455
Multi-Purpose Projects, 6.00%, 7/01/18 ........................................................... 29,645,000 29,730,971
Palo Verde, Refunding, Series A, AMBAC Insured, ETM, 5.00%, 7/01/15 .............................. 11,000,000 10,391,590
Palo Verde, Refunding, Series A, FSA Insured, ETM, 5.00%, 7/01/15 ................................ 6,960,000 6,540,173
San Juan Project Unit 3, Series A, MBIA Insured, 5.00%, 1/01/20 .................................. 5,790,000 5,312,904
Southern California Public Power Authority Transmission Project Revenue, Southern Transmission,
Refunding,
6.125%, 7/01/18 .................................................................................. 51,035,000 52,925,336
5.50%, 7/01/20 ................................................................................... 19,785,000 19,376,044
5.75%, 7/01/21 ................................................................................... 22,530,000 22,629,583
MBIA Insured, 5.75%, 7/01/21 ..................................................................... 16,335,000 16,407,201
Southern Kern USD, COP, Pre-Refunded, 7.10%, 9/01/17 ................................................... 2,250,000 2,477,565
Standard Elementary School District COP, Pre-Refunded, 7.375%, 6/01/11 ................................. 1,390,000 1,467,076
Stockton Central Parking District, Refunding, Series 1991, 7.90%, 8/01/11 .............................. 5,700,000 5,722,059
Stockton East Water District COP, 1990 Project,
Series A, AMBAC Insured, 6.40%, 4/01/22 .......................................................... 14,095,000 14,814,127
Series A, AMBAC Insured, Pre-Refunded, 6.40%, 4/01/22 ............................................ 5,905,000 6,347,462
Series B, 7.45%, 4/01/05 ......................................................................... 28,575,000 57,113,710
Stockton Health Facilities Revenue, St. Joseph Medical Center, Series A, MBIA Insured, 5.50%, 6/01/23 .. 5,000,000 4,857,950
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Stockton PFA Special Tax, CFD No. 90-4, Pre-Refunded, 8.50%, 9/01/16 ................................... $ 8,000,000 $ 8,584,160
Stockton Port District Port Facilities Revenue, Refunding and Improvement, Series A, FSA Insured,
5.95%, 7/01/17 ....................................................................................... 5,095,000 5,269,453
Stockton Revenue COP, Wastewater System Project, Series A, MBIA Insured, 5.20%, 9/01/29 ................ 20,160,000 18,719,770
Stockton Special Tax, CFD No. 90-2,
Brookside, Series 305, Pre-Refunded, 8.50%, 8/01/09 .............................................. 1,430,000 1,514,885
Brookside, Series 305, Pre-Refunded, 8.65%, 8/01/15 .............................................. 2,710,000 2,874,145
Series 2, ETM, 7.30%, 8/01/00 .................................................................... 725,000 746,968
Series 2, Pre-Refunded, 7.35%, 8/01/01 ........................................................... 780,000 819,101
Series 2, Pre-Refunded, 7.40%, 8/01/02 ........................................................... 835,000 877,201
Series 2, Pre-Refunded, 7.45%, 8/01/03 ........................................................... 895,000 940,591
Series 2, Pre-Refunded, 7.50%, 8/01/04 ........................................................... 965,000 1,014,543
Series 2, Pre-Refunded, 7.70%, 8/01/09 ........................................................... 3,000,000 3,158,820
Series 6, 7.75%, 8/01/15 ......................................................................... 3,000,000 3,082,170
Suisun City COP, Civic Center Project, Refunding, 6.45%, 11/01/15 ...................................... 2,105,000 2,181,033
Suisun City RDA, Tax Allocation, Suisun City Redevelopment Project, Refunding, MBIA Insured,
6.00%, 10/01/18 .................................................................................. 3,285,000 3,383,057
5.90%, 10/01/23 .................................................................................. 3,450,000 3,515,136
Sunnyvale Financing Authority Utilities Revenue, Wastewater Reuse and Sludge, Series A, 6.30%, 10/01/12 4,735,000 4,887,988
Tahoe Forest Hospital District Revenue, Series A, 5.90%, 7/01/29 ....................................... 7,990,000 7,420,792
Tehachapi COP, Series 1990, 8.20%, 11/01/20 ............................................................ 2,500,000 2,587,125
Tehachapi Cummings County Water District Revenue COP, Capital Improvement Project, MBIA Insured,
Pre-Refunded, 6.30%, 8/01/14 ......................................................................... 3,000,000 3,237,540
Tehachapi USD, COP, Tompkins Elementary School Project, Pre-Refunded, 7.80%, 2/01/21 ................... 2,285,000 2,442,619
Temecula Valley USD,
Series D, FGIC Insured, 6.00%, 9/01/14 ........................................................... 1,250,000 1,294,375
Series D, FGIC Insured, 6.125%, 9/01/19 .......................................................... 3,110,000 3,199,102
Series E, FSA Insured, 6.35%, 9/01/19 ............................................................ 5,460,000 5,870,537
Thousand Oaks RDA,
MFR, The Shadows Apartments, Refunding, Series A, FNMA Insured, 5.75%, 11/01/27 .................. 7,530,000 7,426,387
Tax Allocation, Thousand Oaks Boulevard Redevelopment, Refunding, MBIA Insured, 5.375%, 12/01/25 . 24,485,000 23,439,980
Thousand Oaks SFHMR,
Capital Appreciation, Series A, GNMA Secured, 8.00%, 9/01/23 ..................................... 139,000 280,966
Refunding, Series A, GNMA Secured, 7.45%, 9/01/10 ................................................ 200,000 205,538
Refunding, Series A, GNMA Secured, 7.55%, 9/01/15 ................................................ 280,000 285,701
Refunding, Series A, GNMA Secured, 7.625%, 3/01/23 ............................................... 790,000 792,923
Torrance Hospital Revenue,
Little Co. of Mary Hospital, Pre-Refunded, 6.875%, 7/01/15 ....................................... 3,595,000 3,864,409
Torrance Memorial Hospital Medical Center, Refunding, 6.75%, 1/01/12 ............................. 2,000,000 2,012,500
Trabuco Canyon PFA, Special Tax Revenue, Refunding,
Series A, FSA Insured, 6.00%, 10/01/10 ........................................................... 13,775,000 14,940,916
Series A, FSA Insured, 6.10%, 10/01/15 ........................................................... 13,220,000 14,217,317
Series C, FSA Insured, 6.00%, 7/01/12 ............................................................ 3,040,000 3,284,842
Series C, FSA Insured, 6.10%, 7/01/19 ............................................................ 5,215,000 5,568,838
Tracy Area Public Facilities Financing Agency Special Tax, CFD No. 8,
Refunding, Series H, MBIA Insured, 5.875%, 10/01/19 .............................................. 18,250,000 18,665,188
Series C, Pre-Refunded, 7.80%, 10/01/16 .......................................................... 5,000,000 5,305,300
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Tracy COP, I-205 Corridor Improvement and Refinancing Project, AMBAC Insured, 5.125%, 10/01/27 ......... $ 6,695,000 $ 6,116,150
Travis USD, COP, Foxboro Elementary School Construction Project,
ETM, 6.10%, 9/01/00 .............................................................................. 335,000 342,625
ETM, 6.20%, 9/01/01 .............................................................................. 355,000 369,640
ETM, 6.30%, 9/01/02 .............................................................................. 170,000 180,234
Pre-Refunded, 6.40%, 9/01/03 ..................................................................... 405,000 437,684
Pre-Refunded, 6.50%, 9/01/04 ..................................................................... 430,000 465,866
Pre-Refunded, 6.60%, 9/01/05 ..................................................................... 455,000 494,189
Pre-Refunded, 6.70%, 9/01/06 ..................................................................... 490,000 533,532
Pre-Refunded, 7.00%, 9/01/12 ..................................................................... 3,670,000 4,025,917
Tri-Cities Municipal Water District COP, Special Districts Lease Program, Series T, Pre-Refunded, 6.55%,
12/01/17 ............................................................................................. 2,665,000 2,904,797
Tri-City Hospital District Revenue, Refunding, Series A, MBIA Insured, 5.625%, 2/15/17 ................. 5,000,000 5,011,150
Tri-Dam Power Authority Revenue, Hydroelectric Sand Bar Project, Refunding, 7.50%, 1/01/17 ............. 47,150,000 48,103,373
Trinity County PUD, COP, Electric District Facilities, Refunding, Series 1993,
6.60%, 4/01/11 ................................................................................... 2,565,000 2,672,474
6.75%, 4/01/23 ................................................................................... 4,000,000 4,119,720
Truckee-Donner PUD, COP, Water System Improvement Project, MBIA Insured, Pre-Refunded, 6.75%, 11/15/21 . 500,000 538,545
Tulare County COP,
Capital Improvement Program, Series A, MBIA Insured, Pre-Refunded, 6.00%, 2/15/16 ................ 4,250,000 4,680,440
Financing Project, Series B, Pre-Refunded, 6.875%, 11/15/12 ...................................... 1,100,000 1,210,022
Tulare Local Health Care District Health Facilities Revenue, 5.20%, 12/01/21 ........................... 4,455,000 4,076,949
Union City Community RDA, Tax Allocation Revenue, Community Redevelopment Project, AMBAC Insured,
5.75%, 10/01/33 ...................................................................................... 5,250,000 5,271,158
University of California COP, UCLA Center Chiller/Cogeneration Project, Refunding,
5.50%, 11/01/17 .................................................................................. 13,940,000 13,876,155
5.60%, 11/01/20 .................................................................................. 14,880,000 14,842,800
University of California Revenues,
Multi-Purpose Projects, Refunding, Series C, AMBAC Insured, 5.00%, 9/01/23 ....................... 17,545,000 15,866,821
Multi-Purpose Projects, Series F, FGIC Insured, 5.00%, 9/01/22 ................................... 40,575,000 36,820,595
Multi-Purpose Projects, Series F, FGIC Insured, 5.00%, 9/01/27 ................................... 82,440,000 73,683,223
Research Facilities, Refunding, Series C, FSA Insured, 5.00%, 9/01/21 ............................ 9,945,000 9,068,149
Research Facilities, Series B, Pre-Refunded, 6.55%, 9/01/24 ...................................... 26,780,000 29,581,456
U.C. Davis Medical Center, AMBAC Insured, 5.75%, 7/01/20 ......................................... 45,385,000 45,627,810
U.C. Davis Medical Center, AMBAC Insured, 5.75%, 7/01/24 ......................................... 15,500,000 15,572,385
Upland COP,
Refunding, Mortgage Insured, 5.50%, 1/01/07 ...................................................... 4,935,000 5,014,009
San Antonio Community Hospital, Refunding, 5.70%, 1/01/11 ........................................ 11,210,000 11,366,828
Upland Housing Authority Revenue, Series 1990, Issue A, 7.85%, 7/01/20 ................................. 4,440,000 4,555,218
Vacaville COP, Pre-Refunded, 9.40%, 10/01/15 ........................................................... 12,170,000 13,053,785
Vacaville PFA Revenue, Local Agency, 8.65%, 9/02/18 .................................................... 5,815,000 6,019,223
Val Verde USD, COP,
Thomas Rivera Middle School, Pre-Refunded, 6.50%, 6/01/22 ........................................ 7,315,000 7,973,862
Vista Verde Project, Pre-Refunded, 6.95%, 6/01/21 ................................................ 2,785,000 2,972,904
Vallejo RDA, Tax Allocation, Waterfront Redevelopment Project, 7.90%, 5/01/19 .......................... 2,470,000 2,486,327
Vallejo Revenue,
Golf Course Project, Series A, 7.90%, 6/01/17 .................................................... 6,000,000 6,266,460
Water Improvement Project, Refunding, Series A, FSA Insured, 5.875%, 5/01/26 ..................... 6,500,000 6,597,955
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Vallejo USD, Special Tax Revenue, CFD No. 2,
7.75%, 9/01/15 ........................................................................... $ 2,300,000 $ 2,337,812
8.125%, 9/01/16 .......................................................................... 5,100,000 5,289,006
Victor Valley UHSD, COP, Pre-Refunded, 7.875%, 11/01/12 ........................................ 5,100,000 5,432,571
Victorville RDA, Tax Allocation, Bear Valley Road Redevelopment Project,
Pre-Refunded, 7.50%, 11/01/06 ............................................................ 1,200,000 1,307,808
Refunding, Series A, FSA Insured, 6.125%, 9/01/19 ........................................ 2,405,000 2,492,013
Refunding, Series A, FSA Insured, 6.125%, 9/01/24 ........................................ 3,245,000 3,349,197
Virgin Islands PFA Revenue, Senior Lien,
Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/22 .................................... 7,000,000 6,583,080
Refunding, Series A, 5.50%, 10/01/14 ..................................................... 3,865,000 3,734,904
Vista Community Development Commission Tax Allocation Revenue, Vista Redevelopment Project Area,
MBIA Insured, 5.50%, 9/01/23 ............................................................. 11,810,000 11,548,290
Series A, MBIA Insured, 5.125%, 9/01/28 .................................................. 3,645,000 3,325,552
Series B, MBIA Insured, 5.20%, 9/01/28 ................................................... 5,485,000 5,098,362
Vista Joint Powers Financing Authority Revenue,
Lease, Refunding, MBIA Insured, 5.625%, 5/01/16 .......................................... 5,000,000 5,045,800
Series A, 7.625%, 2/01/20 ................................................................ 3,675,000 3,773,380
Walnut Improvement Agency RMR, Series A, 10.25%, 5/01/17 ....................................... 80,000 82,501
Walnut PFA Revenue, Tax Allocation, Improvement Project, Refunding, MBIA Insured, 6.50%,
9/01/22 ...................................................................................... 8,285,000 8,827,585
Washington Township Hospital District Revenue,
AMBAC Insured, 5.25%, 7/01/23 ............................................................ 5,000,000 4,727,400
HealthCare District Revenue, 5.25%, 7/01/29 .............................................. 6,500,000 5,785,910
Watsonville Insured Hospital Revenue, Watsonville Community Hospital, Series A, Pre-Refunded,
6.30%, 7/01/15 ........................................................................... 3,990,000 4,426,187
6.35%, 7/01/24 ........................................................................... 5,435,000 6,042,796
Watsonville RDA, GO, Tax Allocation, Watsonville Redevelopment Project, 6.30%, 8/01/06 ......... 1,745,000 1,752,172
West Basin Municipal Water District Revenue COP, 1992 Project, Refunding, Series A, AMBAC
Insured, 5.50%, 8/01/22 ...................................................................... 4,000,000 3,918,200
West Hollywood COP, Refunding, MBIA Insured, 5.00%, 2/01/25 .................................... 6,250,000 5,620,625
West Sacramento Financing Authority Revenue, MBIA Insured, Pre-Refunded, 6.25%, 9/01/24 ........ 15,550,000 17,195,501
West Sacramento RDA, Tax Allocation, West Sacramento Redevelopment Project, MBIA Insured,
Pre-Refunded, 6.25%, 9/01/21 ................................................................. 4,725,000 5,016,391
Westminster RDAR, Tax Allocation, Commercial Redevelopment Project No. 1, Refunding, Series A,
Pre-Refunded, 7.30%, 8/01/21 ................................................................. 6,455,000 6,965,591
Whittier CFD, Special Tax Revenue, Whitter Station Center, Series 1, Pre-Refunded, 7.75%,
9/01/19 ...................................................................................... 5,095,000 5,383,887
William S. Hart Joint School Financing Authority Special Tax Revenue, Community Facilities,
Refunding, FSA Insured, 6.50%, 9/01/14 ....................................................... 4,000,000 4,337,360
---------------
TOTAL BONDS (COST $12,817,076,714) ............................................................. 12,978,373,743
---------------
ZERO COUPON/STEP-UP BONDS 9.3%
Anaheim PFA, Lease Revenue,
Capital Appreciation, Public Improvements Project, Series C, FSA Insured, 9/01/26 ........ 4,430,000 898,138
Capital Appreciation, Public Improvements Project, Series C, FSA Insured, 9/01/27 ........ 17,860,000 3,412,510
Capital Appreciation, Public Improvements Project, Series C, FSA Insured, 9/01/28 ........ 8,425,000 1,517,006
Public Improvements Project, Series C, FSA Insured, 9/01/33 .............................. 37,070,000 4,961,820
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
ZERO COUPON/STEP-UP BONDS (CONT.)
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 $ 2,893,188
Baldwin Park RDA, Tax Allocation, San Gabriel, Refunding, Series A, ETM,
2/01/00 ...................................................................................... 550,000 543,488
2/01/01 ...................................................................................... 560,000 530,533
2/01/02 ...................................................................................... 565,000 512,082
2/01/03 ...................................................................................... 570,000 493,261
2/01/04 ...................................................................................... 575,000 474,185
2/01/05 ...................................................................................... 585,000 458,517
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 ......................................... 300,000 287,205
California Educational Facilities Authority Revenue, Santa Clara University, AMBAC Insured,
9/01/26 .......................................................................................... 5,800,000 1,191,378
California Health Facilities Financing Authority Revenue, Kaiser Permanente, Series A, ETM,
10/01/11 ......................................................................................... 13,970,000 7,154,736
California HFAR,
Capital Appreciation, Series G, MBIA Insured, 2/01/30 ........................................ 72,660,000 11,543,494
Home Mortgage, Capital Appreciation, Series A, 8/01/16 ....................................... 615,000 101,487
Home Mortgage, Series B, MBIA Insured, 2/01/30 ............................................... 125,210,000 19,892,113
Home Mortgage, Series C, 8/01/21 ............................................................. 11,375,000 2,152,378
California Public School District Financing Authority Lease Revenue, Los Banos School,
Series A, FSA Insured, zero cpn. to 10/01/00, 6.20% thereafter, 10/01/23 ..................... 455,000 434,857
Series B, FSA Insured, Pre-refunded, zero cpn. to 10/01/00, 6.20% thereafter,10/01/23 ........ 4,535,000 4,571,325
California State GO,
Principal Eagles II, Series 3, 3/01/09 ....................................................... 7,500,000 4,683,225
Principal Eagles II, Series 4, 6/01/06 ....................................................... 10,000,000 7,340,400
Principal Eagles II, Series 6, 3/01/09 ....................................................... 5,000,000 3,122,150
Principal M-Raes, Series 8, 4/01/09 .......................................................... 9,000,000 5,596,470
California Statewide CDA Revenue, COP, Insured Hospital, Triad Health Care, Refunding, ETM,
8/01/09 ...................................................................................... 6,450,000 3,948,174
8/01/10 ...................................................................................... 6,745,000 3,886,267
8/01/11 ...................................................................................... 3,115,000 1,686,087
Campbell USD, Series B, FGIC Insured,
8/01/20 ...................................................................................... 5,000,000 1,492,900
8/01/21 ...................................................................................... 6,280,000 1,761,854
Chino USD, COP, Land Acquisition, Series B, FSA Insured, zero cpn. to 9/01/02,
6.60% thereafter, 9/01/14 .................................................................... 1,580,000 1,356,951
6.70% thereafter, 9/01/29 .................................................................... 4,780,000 4,032,121
Contra Costa County COP, Merrithew Memorial Hospital Project, ETM, 11/01/15 ........................ 6,810,000 2,781,272
Contra Costa Home Mortgage Finance Authority HMR, Mandatory Sinking Fund,
3/01/07, MBIA Insured, Pre-Refunded, 9/01/17 ................................................. 10,770,000 2,332,890
9/01/07, MBIA Insured, Pre-Refunded, 9/01/17 ................................................. 5,890,000 1,317,181
3/01/08, MBIA Insured, Pre-Refunded, 9/01/17 ................................................. 9,635,000 2,209,980
9/01/08, MBIA Insured, Pre-Refunded, 9/01/17 ................................................. 8,095,000 1,916,167
3/01/09, MBIA Insured, Pre-Refunded, 9/01/17 ................................................. 8,615,000 2,075,698
9/01/09, MBIA Insured, Pre-Refunded, 9/01/17 ................................................. 7,135,000 1,772,905
3/01/10, MBIA Insured, Pre-Refunded, 9/01/17 ................................................. 7,700,000 1,959,111
9/01/10, MBIA Insured, Pre-Refunded, 9/01/17 ................................................. 6,275,000 1,645,870
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
ZERO COUPON/STEP-UP BONDS (CONT.)
Contra Costa School Financing Authority Revenue, Capital Appreciation,
Antioch USD Community, Series B, 9/01/07 ..................................................... $ 1,515,000 $ 936,361
Vista USD, Series A, FSA Insured, Pre-Refunded, 9/01/03 ...................................... 1,000,000 847,230
Vista USD, Series A, FSA Insured, Pre-Refunded, 9/01/17 ...................................... 3,820,000 1,229,161
Desert Sands USD, COP, Capital Projects, FSA Insured, zero cpn. to 3/01/01, 6.45% thereafter,
3/01/20 .......................................................................................... 6,820,000 6,207,428
El Paso de Robles GO, Capital Appreciation, Series A, FGIC Insured,
8/01/16 ...................................................................................... 2,050,000 777,135
8/01/22 ...................................................................................... 11,485,000 2,960,029
8/01/27 ...................................................................................... 11,495,000 2,177,613
Elk Grove USD, Special Tax, Capital Appreciation, CFD 1, MBIA Insured,
12/01/19 ..................................................................................... 2,775,000 847,874
12/01/20 ..................................................................................... 2,765,000 793,279
12/01/21 ..................................................................................... 4,195,000 1,129,714
12/01/22 ..................................................................................... 4,195,000 1,059,993
12/01/23 ..................................................................................... 4,195,000 996,480
12/01/24 ..................................................................................... 4,200,000 937,776
12/01/25 ..................................................................................... 6,355,000 1,333,406
12/01/26 ..................................................................................... 6,355,000 1,252,825
12/01/27 ..................................................................................... 6,355,000 1,180,124
12/01/28 ..................................................................................... 6,355,000 1,111,617
Fontana USD, GO, Series D, FGIC Insured, 5/01/17 ................................................... 5,000,000 5,450,793
Foothill/Eastern Corridor Agency Toll Revenue, Capital Appreciation, Senior Lien, Series A,
ETM, 1/01/24 ..................................................................................... 72,045,000 17,517,021
Foothill/Eastern Corridor Agency Toll Road Revenue,
Capital Appreciation, Refunding, 1/15/26 ..................................................... 38,720,000 7,471,798
Capital Appreciation, Refunding, 1/15/30 ..................................................... 30,960,000 4,529,448
Capital Appreciation, Refunding, 1/15/31 ..................................................... 100,415,000 13,786,980
Capital Appreciation, Refunding, 1/15/36 ..................................................... 182,160,000 18,208,714
Capital Appreciation, Refunding, 1/15/38 ..................................................... 170,560,000 15,016,102
Capital Appreciation, Refunding, MBIA Insured, 1/15/21 ....................................... 51,180,000 13,674,272
Capital Appreciation, Refunding, MBIA Insured, 1/15/37 ....................................... 170,615,000 16,005,393
Capital Appreciation, Refunding, zero cpn. to 7/15/09, 5.80% thereafter, 1/15/20, ............ 45,500,000 24,702,405
Capital Appreciation, Refunding, zero cpn. to 7/15/09, 5.875% thereafter, 1/15/27, ........... 80,835,000 43,225,708
Capital Appreciation, Refunding, zero cpn. to 7/15/09, 5.875% thereafter, 1/15/28, ........... 80,500,000 43,003,100
Capital Appreciation, Refunding, zero cpn. to 7/15/09, 5.875% thereafter, 1/15/29, ........... 112,230,000 59,897,151
Capital Appreciation, Senior Lien, Series A, ETM, 1/01/22 .................................... 30,835,000 8,461,741
Capital Appreciation, Senior Lien, Series A, ETM, 1/01/23 .................................... 5,765,000 1,489,272
Capital Appreciation, Senior Lien, Series A, ETM, 1/01/28 .................................... 2,000,000 381,920
Convertible Capital Appreciation, Refunding, 1/15/26 ......................................... 30,000,000 16,059,300
Convertible Capital Appreciation, Refunding, 1/15/32 ......................................... 100,000,000 12,886,000
Convertible Capital Appreciation, Refunding, 1/15/33 ......................................... 132,460,000 16,018,388
Convertible Capital Appreciation, Refunding, 1/15/34 ......................................... 100,000,000 11,349,000
Convertible Capital Appreciation, Refunding, 1/15/35 ......................................... 20,000,000 2,130,200
Senior Lien, Series A, ETM, 1/01/09 .......................................................... 10,000,000 8,493,591
Senior Lien, Series A, ETM, 1/01/25 .......................................................... 20,660,000 4,727,008
Senior Lien, Series A, ETM, 1/01/26 .......................................................... 23,475,000 5,040,552
Senior Lien, Series A, ETM, 1/01/27 .......................................................... 15,000,000 3,037,350
Senior Lien, Series A, ETM, 1/01/29 .......................................................... 35,310,000 6,358,625
Senior Lien, Series A, Pre-Refunded, 1/01/12 ................................................. 8,000,000 7,304,809
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
ZERO COUPON/STEP-UP BONDS (CONT.)
Lodi Electric Systems Revenue, COP, Capital Appreciation Bond, Series B, MBIA Insured, 1/15/19 ..... $ 6,360,000 $ 2,015,801
Los Angeles Convention and Exhibition Center Authority COP, Series 1985, ETM,12/01/05 .............. 26,750,000 20,181,805
Los Angeles HMR, Series A, GNMA Secured, 8/25/16 ................................................... 1,035,000 253,925
Los Banos USD, COP, Series B, MBIA Insured, 8/01/16 ................................................ 5,000,000 4,518,850
New Haven USD, GO, Capital Appreciation, Series C, FGIC Insured, 8/01/23 ........................... 14,700,000 3,561,810
Palmdale CRDA, Tax Allocation, Merged Project, Sub. Lien, AMBAC Insured, zero cpn. to 12/01/04,
5.50% thereafter, 12/01/29 ....................................................................... 3,255,000 2,417,290
Paramount USD, COP, Land Acquisition, Series B, FSA Insured, zero cpn. to 9/01/01,
6.85% thereafter, 9/01/14 .................................................................... 1,695,000 1,507,075
7.00% thereafter, 9/01/29 .................................................................... 7,675,000 6,825,530
Pasadena Special Tax CFD, No. 1 Civic Center West, Pre-Refunded,12/01/17 ........................... 4,090,000 1,333,135
Perris SFMR, ETM, Series A, GNMA Secured, 6/01/23 .................................................. 19,095,000 4,672,925
Placer Hills Union Elementary School District COP, Series B, zero cpn. to 3/01/00, 7.125%
thereafter, 3/01/19 .............................................................................. 510,000 517,480
Placer UHSD COP, Capital Appreciation, Series A, 3/01/19 ........................................... 2,095,000 2,125,733
Porterville UHSD, COP, Capital Appreciation, Land Acquisition, Series A, FSA Insured, 9/01/27 ...... 1,310,000 1,386,815
Rancho Water District Financing Authority Revenue, AMBAC Insured,
8/15/16 ...................................................................................... 8,605,000 3,308,535
8/15/17 ...................................................................................... 13,605,000 4,891,540
8/15/18 ...................................................................................... 13,605,000 4,585,425
Riverside County Asset Leasing Corp. Leasehold Revenue, Riverside County Hospital Project, MBIA
Insured,
6/01/23 ...................................................................................... 14,160,000 3,505,165
6/01/24 ...................................................................................... 13,005,000 3,027,560
Riverside County Board of Education COP, Capital Appreciation Financing Projects, Series A,
11/01/05 ......................................................................................... 1,250,000 935,510
Riverside County SFMR, Capital Appreciation Mortgage,
Series A, GNMA Secured, ETM, 9/01/14 ......................................................... 20,220,000 8,685,905
Series A, GNMA Secured, ETM, 11/01/20 ........................................................ 25,055,000 7,194,290
Series B, GNMA Secured, ETM, 6/01/23 ......................................................... 26,160,000 6,401,875
Rocklin USD, GO, Capital Appreciation, Series A, FGIC Insured,
9/01/08 ...................................................................................... 3,660,000 2,374,095
9/01/09 ...................................................................................... 4,100,000 2,496,858
9/01/10 ...................................................................................... 4,595,000 2,625,123
9/01/11 ...................................................................................... 5,145,000 2,756,844
9/01/12 ...................................................................................... 5,760,000 2,892,210
9/01/16 ...................................................................................... 33,960,000 13,024,338
Roseville City School District GO, Capital Appreciation, Series A,
8/01/11 ...................................................................................... 3,115,000 1,647,710
8/01/17 ...................................................................................... 30,770,000 10,690,420
Roseville Joint UHSD, Capital Appreciation, Series A,
8/01/10 ...................................................................................... 1,820,000 1,027,845
8/01/11 ...................................................................................... 1,965,000 1,039,405
8/01/17 ...................................................................................... 18,155,000 6,305,412
San Francisco City and County RDA, Lease Revenue, George R. Moscone Center, Capital
Appreciation,
7/01/05 ...................................................................................... 12,820,000 9,764,865
7/01/06 ...................................................................................... 11,320,000 8,168,965
7/01/07 ...................................................................................... 4,570,000 3,118,430
7/01/08 ...................................................................................... 7,785,000 5,004,820
Pre-Refunded, 7/01/16 ........................................................................ 16,300,000 4,928,630
Pre-Refunded, 7/01/17 ........................................................................ 16,300,000 4,534,985
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
ZERO COUPON/STEP-UP BONDS (CONT.)
San Francisco City and County RDA, Lease Revenue, George R. Moscone Center, Capital
Appreciation, (cont.)
Pre-Refunded, 7/01/18 .................................................................... $ 16,300,000 $ 4,172,800
Zero cpn. to 7/01/02, 8.50% thereafter, 7/01/14 .......................................... 46,000,000 42,999,880
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 1,867,005
San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, Senior Lien,
ETM, 1/01/25 ............................................................................. 5,700,000 1,304,160
ETM, 1/01/28 ............................................................................. 33,545,000 6,440,975
ETM, 1/01/29 ............................................................................. 37,050,000 6,710,125
Pre-Refunded, zero cpn. to 1/01/02, 7.50% thereafter, 1/01/09 ............................ 21,585,000 22,028,355
Pre-Refunded, zero cpn. to 1/01/02, 7.55% thereafter, 1/01/10 ............................ 10,745,000 11,005,888
Pre-Refunded, zero cpn. to 1/01/02, 7.60% thereafter, 1/01/11 ............................ 25,935,000 26,624,350
Pre-Refunded, zero cpn. to 1/01/02, 7.65% thereafter, 1/01/12 ............................ 25,215,000 25,887,987
Pre-Refunded, zero cpn. to 1/01/02, 7.65% thereafter, 1/01/13 ............................ 27,350,000 27,941,306
Pre-Refunded, zero cpn. to 1/01/02, 7.705% thereafter, 1/01/14 ........................... 7,470,000 7,708,217
Pre-Refunded, zero cpn. to 1/01/02, 7.705% thereafter, 1/01/15 ........................... 60,155,000 61,679,928
Refunding, Series A, 1/15/16 ............................................................. 19,500,000 12,845,430
Refunding, Series A, 1/15/17 ............................................................. 17,000,000 11,152,170
Refunding, Series A, 1/15/18 ............................................................. 60,000,000 39,336,600
Refunding, Series A, 1/15/19 ............................................................. 57,000,000 37,217,580
Refunding, Series A, 1/15/20 ............................................................. 80,000,000 51,788,000
Refunding, Series A, 1/15/22 ............................................................. 90,000,000 57,976,200
Refunding, Series A, 1/15/23 ............................................................. 80,000,000 51,500,800
Refunding, Series A, 1/15/24 ............................................................. 80,000,000 51,468,800
Santa Maria Water and Wastewater Revenue, COP, Series A, AMBAC Insured, 8/01/27 ................ 20,000,000 14,030,400
Simi Valley SFRMR, Series A, 9/01/25 ........................................................... 850,000 111,935
Southern California Public Power Authority Power Project Revenue, Refunding, Series A, AMBAC
Insured,
7/01/11 .................................................................................. 12,000,000 6,486,360
7/01/12 .................................................................................. 16,890,000 8,556,640
7/01/13 .................................................................................. 16,000,000 7,582,240
Stockton East Water District COP, Refunding, Series A, AMBAC Insured, 4/01/16 .................. 103,885,000 38,263,960
---------------
TOTAL ZERO COUPON/STEP-UP BONDS (COST $1,292,484,773) .......................................... 1,343,889,085
---------------
TOTAL LONG TERM INVESTMENTS (COST 14,109,561,487) .............................................. 14,322,262,828
---------------
Short-term Investments .1%
(b)California Health Facilities Financing Authority Revenue, Adventist Hospital, Series B, MBIA
Insured, Daily VRDN and Put, 2.40%, 9/01/28 .................................................. 8,400,000 8,400,000
(b)Irvine 1915 Act, AD No. 97-13, Daily VRDN and Put, 3.85%, 9/02/23 ........................... 772,000 772,000
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $9,172,000) ............................................... 9,172,000
---------------
TOTAL INVESTMENTS (COST $14,118,733,487) 99.2% ............................................... 14,331,434,828
OTHER ASSETS, LESS LIABILITIES .8% ........................................................... 124,181,881
---------------
NET ASSETS 100.0% ............................................................................ $14,455,616,709
===============
</TABLE>
See glossary of terms on page 55.
(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.
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1999 (UNAUDITED) (CONT.)
GLOSSARY OF TERMS
- --------------------------------------------------------------------------------
1915 ACT - Improvement Bond Act of 1915
ABAG - The Association of Bay Area Governments
ACA - American Capital Access
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
ETM - Escrow to Maturity
FGIC - Financial Guaranty Insurance Co.
FHA - Federal Housing Authority/Agency
FNMA - Federal National Mortgage Association
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
HFAR - Housing Finance Authority/Agency Revenue
HFR - Home Financial Revenue
HMR - Home Mortgage Revenue
ID - Improvement District
IDR - Industrial Development Revenue
MBIA - Municipal Bond Investors Assurance Corp.
MBS - Mortgage-Backed Securities
MFHR - Multi-Family Housing Revenue
MFR - Multi-Family Revenue
MTA - Metropolitan Transit Authority
MUD - Municipal Utility District
PCFA - Pollution Control Financing Authority
PCR - Pollution Control Revenue
PFA - Public Financing Authority
PFAR - Public Financing Authority Revenue
PUD - Public Utility District
RDA - Redevelopment Agency
RDAR - Redevelopment Agency Revenue
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
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<S> <C>
Assets:
Investments in securities, at value (cost $14,118,733,487) ................................................. $ 14,331,434,828
Cash ....................................................................................................... 198,900
Receivables:
Investment securities sold ................................................................................ 6,800,203
Capital shares sold ....................................................................................... 8,202,923
Interest .................................................................................................. 202,107,529
----------------
Total assets ............................................................................................. 14,548,744,383
----------------
Liabilities:
Payables:
Investment securities purchased ........................................................................... 65,343,137
Capital shares redeemed ................................................................................... 18,155,338
Affiliates ................................................................................................ 8,070,975
Shareholders .............................................................................................. 1,082,303
Other liabilities .......................................................................................... 475,921
----------------
Total liabilities ........................................................................................ 93,127,674
----------------
Net assets, at value .................................................................................... $ 14,455,616,709
================
Net assets consist of:
Undistributed net investment income ........................................................................ $ 19,669,971
Net unrealized appreciation ................................................................................ 212,701,341
Accumulated net realized loss .............................................................................. (11,152,989)
Capital shares ............................................................................................. 14,234,398,386
----------------
Net assets, at value .................................................................................... $ 14,455,616,709
================
CLASS A:
Net asset value per share ($13,928,124,620 divided by 1,996,660,096 shares outstanding)* ................... $ 6.98
================
Maximum offering price per share ($6.98 divided by 95.75%) ................................................. $ 7.29
================
CLASS B:
Net asset value and maximum offering price per share ($95,966,459 divided by 13,769,324 shares outstanding)* $ 6.97
================
CLASS C:
Net asset value per share ($431,525,630 divided by 61,916,890 shares outstanding)* ......................... $ 6.97
================
Maximum offering price per share ($6.97 divided by 99.00%) ................................................. $ 7.04
================
</TABLE>
*Redemption price is equal to net asset value less any applicable contingent
deferred sales charge.
See notes to financial statements.
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Financial Statements (continued)
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<S> <C>
Investment income:
Interest ................................................ $ 441,947,132
-------------
Expenses:
Management fees (Note 3) ................................ 33,574,174
Distribution fees: (Note 3)
Class A ................................................ 5,733,163
Class B ................................................ 240,536
Class C ................................................ 1,483,424
Transfer agent fees (Note 3) ............................ 1,942,592
Custodian fees .......................................... 79,548
Reports to shareholders ................................. 622,203
Registration and filing fees ............................ 283,503
Professional fees ....................................... 119,114
Directors' fees and expenses ............................ 60,949
Other ................................................... 206,757
-------------
Total expenses ..................................... 44,345,963
-------------
Net investment income ............................. 397,601,169
-------------
Realized and unrealized losses:
Net realized loss from investments ..................... (10,834,792)
Net unrealized depreciation on investments ............. (895,828,284)
-------------
Net realized and unrealized loss ......................... (906,663,076)
-------------
Net decrease in net assets resulting from operations ..... ($509,061,907)
=============
</TABLE>
See notes to financial statements.
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Financial Statements (continued)
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 (UNAUDITED)
AND THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1999 MARCH 31, 1999
------------------ --------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ............................................. $ 397,601,169 $ 813,754,289
Net realized gain (loss) from investments ......................... (10,834,792) 46,041,024
Net unrealized appreciation (depreciation) on investments ......... (895,828,284) 112,383,811
---------------- ----------------
Net increase (decrease) in net assets resulting from operations (509,061,907) 972,179,124
Distributions to shareholders from:
Net investment income:
Class A .......................................................... (367,848,662) (797,790,042)
Class B .......................................................... (1,553,933) (158,483)
Class C .......................................................... (10,025,158) (17,577,963)
Net realized gains:
Class A .......................................................... (10,644,696) (49,417,902)
Class B .......................................................... (48,229) --
Class C .......................................................... (331,930) (1,251,012)
---------------- ----------------
Total distributions to shareholders ................................ (390,452,608) (866,195,402)
Capital share transactions: (Note 2)
Class A .......................................................... (677,375,784) 602,614,722
Class B .......................................................... 56,633,528 43,693,388
Class C .......................................................... (6,048,492) 166,346,589
---------------- ----------------
Total capital share transactions ................................... (626,790,748) 812,654,699
Net increase (decrease) in net assets ......................... (1,526,305,263) 918,638,421
Net assets:
Beginning of period ................................................ 15,981,921,972 15,063,283,551
---------------- ----------------
End of period ...................................................... $ 14,455,616,709 $ 15,981,921,972
================ ================
Undistributed net investment income included in net assets:
End of period ...................................................... $ 19,669,971 $ 1,496,555
================ ================
</TABLE>
See notes to financial statements.
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Notes to Financial Statements (unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Franklin California Tax-Free Income Fund (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 substantially 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.
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Notes to Financial Statements (unaudited) (continued)
2. CAPITAL STOCK (Cont.)
At September 30, 1999, there were five billion shares authorized ($.01 par) for
each class. Transactions in the Fund's shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1999 MARCH 31, 1999
------------------ --------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
CLASS A SHARES:
Shares sold 140,604,066 $ 1,006,566,701 474,619,393 $ 3,502,952,552
Shares issued in reinvestment of distributions 22,889,930 164,642,202 48,948,394 360,693,105
Shares redeemed (257,774,896) (1,848,584,687) (441,485,023) (3,261,030,935)
------------ -------------- ------------ --------------
Net increase (decrease) (94,280,900) $ (677,375,784) 82,082,764 $ 602,614,722
============= =============== ============ ==============
CLASS B SHARES:
Shares sold 8,373,035 $ 60,241,754 5,987,954 $ 44,294,143
Shares issued in reinvestment of distributions 149,373 1,069,665 14,890 109,834
Shares redeemed (659,802) (4,677,891) (96,126) (710,589)
----------- ------------- ------------ -------------
Net increase 7,862,606 $ 56,633,528 5,906,718 $ 43,693,388
=========== ============== ============ ==============
CLASS C SHARES:
Shares sold 6,956,752 $ 50,078,132 28,413,185 $ 209,666,423
Shares issued in reinvestment of distributions 970,292 6,975,554 1,696,053 12,497,405
Shares redeemed (8,846,628) (63,102,178) (7,568,825) (55,817,239)
----------- ------------- ----------- -------------
Net increase (decrease) (919,584) $ (6,048,492) 22,540,413 $ 166,346,589
=========== ============== ========== =============
</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>
<CAPTION>
ANNUALIZED
FEE RATE MONTH-END NET ASSETS
-------- --------------------
<S> <C>
.625% First $100 million
.500% Over $100 million, up to and including $250 million
.450% Over $250 million, up to and including $10 billion
.440% Over $10 billion, up to and including $12.5 billion
.420% Over $12.5 billion, up to and including $15 billion
.400% Over $15 billion, up to and including $17.5 billion
</TABLE>
Fees are further reduced on net assets over $17.5 billion.
60
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND, INC.
Notes to Financial Statements (unaudited)(continued)
3. TRANSACTIONS WITH AFFILIATES (cont.)
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 period of $2,667,469 and $537,608,
respectively.
The Fund paid transfer agent fees of $1,942,592, of which $1,840,076 was paid to
Investor Services.
4. INCOME TAXES
At September 30, 1999, the net unrealized appreciation based on the cost of
investments for income tax purposes of $14,119,254,552 was as follows:
Unrealized appreciation $553,035,984
Unrealized depreciation (340,855,708)
------------
Net unrealized appreciation $212,180,276
============
Net realized capital losses 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
period ended September 30, 1999 aggregated $1,323,877,442 and $2,103,734,937,
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.
