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TABLE OF CONTENTS
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FRANKLIN CALIFORNIA
TAX-EXEMPT MONEY FUND................................................. page 3
FRANKLIN CALIFORNIA
INSURED TAX-FREE INCOME FUND.......................................... page 5
FRANKLIN CALIFORNIA INTERMEDIATE-
TERM TAX-FREE INCOME FUND............................................. page 9
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February 17, 1995
Dear Shareholder:
This report on the Franklin California Tax-Free Trust covers the six-month
period ended December 31, 1994.
Stock and bond markets continued to be dominated by two major trends during the
reporting period: consistent strong economic growth and an accompanying rise in
interest rates. In response to persistent economic growth, the Federal Reserve
Board continued its restrictive monetary policy, raising interest rates in
November for the sixth time since February. As reported in the fund's annual
report dated June 30, 1994, the Federal Reserve Board has been increasing
interest rates in hopes of restraining inflation. Since the first tightening in
February, the federal funds rate -- the rate banks charge each other for
overnight loans -- rose two and one-half percentage points, from 3.00% to 5.50%.
Interest rate increases usually result in bond market declines since previously
issued bonds, with lower yields, are less attractive than new issues. In this
market environment, price volatility, while traditionally uncharacteristic of
the municipal bond market, reduced investors' returns over the
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past year. In general, Franklin has always recognized that stability of
principal is important to our shareholders, and we seek to manage the funds in
the Franklin California Tax-Free Trust accordingly. Of course, each fund in the
Trust has a different investment objective, and stability of principal is more
readily attained by the Franklin California Tax-Exempt Money Fund, which has an
average maturity of 37 days.*
Political events also affect the bond market's performance over the near term.
For example, you may have read about Orange County's recent financial problems.
Because, the Franklin funds are managed to be well diversified among many
municipal securities, representing cities, counties, and market sectors
throughout the state, the funds in the Franklin California Tax-Free Trust have
always had very limited exposure to Orange County obligations. Therefore, any
change in the price of these obligations has had little impact on the funds.
Most importantly, even in the most difficult of times, Franklin's municipal bond
management teams follow a simple, "plain vanilla" investment approach in
adhering to their primary objective, which is to maximize tax-free income with
the goal of greater price stability. Our managers search for the highest yields
available according to each fund's objective. In addition, speculative
derivative securities are not used in an effort to increase a fund's returns.
Above all, we maintain a long-term investment horizon, believing that will
produce the most satisfactory investment results.
We maintain our belief that municipal bonds can provide one of the safest,
long-term tax-free investments available today. We value your commitment as a
shareholder and look forward to serving your investment needs in the years
ahead.
Sincerely,
Charles B. Johnson,
President
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ABOUT DERIVATIVES
There has been a great deal of negative media attention lately on derivatives
and their use in the marketplace. Various investment vehicles have been derived
from municipal securities in an attempt to increase yield to investors. Exotic
derivative issues such as inverse floaters and other customized contracts are
structured to the specifications of the issuer or the investor, and may exhibit
extreme interest rate sensitivity and/or market illiquidity. Many of these
derivative securities are fairly new to the marketplace and have no long-term
performance records.
The managers of our municipal bond funds do not purchase and have never
purchased these types of derivatives or similar potentially volatile securities.
We will continue to manage our bond funds as "plain vanilla" investments that do
not take undue risks to increase yield. Your fund's prospectus contains a
complete description of the securities permissible for purchase by the fund.
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*An investment in the fund is neither insured nor guaranteed by the U.S.
government. There is no assurance that the $1.00 per share price will be
maintained.
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FRANKLIN CALIFORNIA TAX-FREE TRUST
FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND
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FUND OBJECTIVE:
Seeks to provide shareholders with a high level of income exempt from regular
federal and California state personal income taxes, by investing in a
diversified portfolio of short-term municipal debt securities issued in
California. The fund is managed to maintain a $1 share price.
- - -------------------------------------------------------------------------------
In response to rising short-term interest rates, we began reducing the weighted
average maturity of the fund in February of 1994. Since our last report, we
continued this strategy and effectively reduced the fund's average maturity to
37 days as of December 31, 1994, from 44 days on June 30, 1994. Reducing the
fund's average maturity in a rising interest rate environment allowed us to
reinvest more quickly in newer securities offering higher rates -- which in turn
helped to increase the fund's yield.
On December 31, 1994, the fund's seven-day effective yield, which assumes the
compounding of daily dividends, was 4.37% -- reflecting an increase of more than
two percentage points from the fund's yield of 2.17% on June 30, 1994. The
seven-day annualized yield was 4.28% on December 31, 1994. For California
investors in the 46.2% maximum combined federal and California personal income
tax bracket, your fund's annualized yield was equivalent to a taxable yield of
7.96%.
"GRAPHIC MATERIAL (1) OMITTED - SEE APPENDIX "
The Franklin California Tax-Exempt Money Fund has maintained its strategy of
investing 100% of its assets in "first tier" securities. These are short-term
securities that receive one of the two highest category ratings from at least
two nationally recognized rating organizations, or in non-rated securities we
judge internally to be of comparable credit quality. We do not invest in
derivatives or other potentially volatile securities that we think involve
significant risk -- instead, we seek to provide our shareholders with a
high-quality, conservative investment.
3
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This strategy is especially critical in consideration of current events such as
the announcement of Orange County's financial difficulties. On December 7, 1994
when the news about Orange County became known, the Franklin California
Tax-Exempt Money Fund had minimal exposure to direct Orange County obligations.
Specifically, the fund held 0.94% of its total net assets in such securities on
that date. Your fund's managers did not expect this exposure to impact the
fund's ability to maintain its $1.00 net asset value per share price. However,
Franklin Resources -- parent company of the fund's advisor -- announced on
December 8, that it had applied for and received approval from the Securities
and Exchange Commission to purchase $6.6 million in face value amount of
unsecured Orange County obligations from the fund.
Please keep in mind that the securities were purchased by the company
voluntarily in an effort to ensure that the fund complied with rules governing
the quality of money fund portfolios. Furthermore, in light of widespread
publicity regarding the Orange County situation, Franklin Resources wanted to
alleviate any concerns that you, as a shareholder, may have had regarding these
investments. As a result, your fund has no exposure to Orange County
obligations.
Overall, the fund remains highly diversified. At year-end, its $692 million in
total net assets were invested in over 168 issues representing 67 counties and
other municipalities throughout California. Looking forward, the fund's managers
remain optimistic about the short-term California municipal bond market. Low
unemployment and an improving business climate should keep California moving
forward.
PERFORMANCE SUMMARY
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FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND
Periods ended December 31, 1994
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Seven-day annualized yield(1) 4.28%
Seven-day effective yield(1) 4.37%
Taxable equivalent yield(2) 7.96%
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1. Annualized and effective yields are for the seven-day period ended December
31, 1994. Yield reflects fluctuations in interest rates on portfolio investments
and fund expenses. Yields should be viewed in terms of the current, low rate of
inflation. Just as high inflation usually results in higher yields, low
inflation often results in lower yields.
2. Taxable equivalent seven-day annualized yield assumes the 1994 maximum
combined 46.2% federal and California state income tax bracket, based on the
maximum federal income tax rate of 39.6%.
Please remember that an investment in the fund is neither insured nor guaranteed
by the US government, and that there can be no assurance that the fund will be
able to maintain a stable net asset value of $1.00 per share. Past performance
cannot guarantee future results.
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4
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FRANKLIN CALIFORNIA TAX-FREE TRUST
FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND
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FUND OBJECTIVE:
To provide high current income exempt from regular federal and California state
personal income taxes by investing primarily in a diversified portfolio of
insured California municipal securities.(1,2)
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California's economy, while showing improvement, remained weak during the
reporting period. Economic, fiscal, and structural pressures continue to inhibit
the state's attempts to maintain financial stability, and the continued
downsizing of the aerospace industry has further hampered economic recovery in
Southern California. Nevertheless, the state enjoys strong income levels
relative to the nation and a broad-based economy. The state's estimated
population reached 31.7 million in 1993 and continues to grow much faster than
the nation's.
A slow economic recovery, coupled with the impact of rising interest rates,
affected the performance of your fund during the period under review. While we
view the restrictive measures taken by the Federal Reserve Board as positive on
a long-term basis, higher interest rates caused short-term price volatility
among all fixed-income securities, including the insured municipal bonds in
which your fund invests.
The California municipal bond market was also impacted by Orange County's
financial losses. While there is a certain level of concern in the marketplace
surrounding the county's future ability to meet its debt obligations,
shareholders in the Franklin California Insured Tax-Free Income Fund can be
assured that 100% of the fund's holdings, which include minimal exposure to
insured Orange County obligations (3.6% of total net assets), are backed by
insurance as to the timely payment of principal and interest. This means that
even if an issuer were to default on a security held by the fund, the fund can
continue to collect payments from the insurer. It should be noted, however, that
the insurance feature does not guarantee the market value of the securities or
the fund's share price. Those securities in the fund not covered by insurance
are secured by irrevocable pledges of either direct obligations of the US
government or an agency whose securities are guaranteed by
1. The fund will seek to comply with all federal and state regulations regarding
the payment of tax-exempt income dividends. Investors subject to the federal
alternative minimum tax may find a small portion of the income dividends subject
to such tax. Distributions of capital gains and ordinary income from accrued
market discount, if any, are generally taxable.
2. Fund shares are not insured by any US government agency. Insurance relates
only to the payment of principal and interest on the portfolio's securities. It
does not eliminate market risks to the fund's share price or insure the value of
the shares. Terms of the insurance are more fully described in the prospectus,
and no representation is made as to any insurer's ability to meet its
commitments.
5
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the full faith and credit of the US government as to the timely payment of
principal and interest. Because of this insurance backing, the fund continues to
enjoy a "AAAf" rating -- the highest mutual fund rating possible -- from
Standard & Poor's Corporation.(3)
It is important to note that, to date, Orange County has not had a payment
default on their tax-exempt debt obligations and the fund's shares have not
suffered any significant impact directly related to this development.
Franklin maintains a very conservative approach while seeking to achieve the
fund's objectives. We strive to maximize shareholders' current tax-free income,
and also attempt to minimize risk. Our strategy is simple: we purchase
securities based on their income producing potential and avoid short-term
trading to capture capital gains. In addition, we also purchase bonds as close
to par, or face value, as possible in the current marketplace. Although the
fund's share price will fluctuate with market conditions, we believe this
approach helps the fund to maintain a relatively stable share value. In fact,
when interest rates change, these securities have historically been less
volatile than lower priced bonds (discount bonds).
"GRAPHIC MATERIAL (2) OMITTED - SEE APPENDIX "
FOR A COMPLETE LIST OF PORTFOLIO HOLDINGS, PLEASE SEE PAGE 13 OF THIS REPORT.
Broad diversification is another important management strategy. On December 31,
1994, the fund's 395 holdings were divided among more than 248 cities, counties,
and other municipalities state-wide. The pie chart above illustrates that the
holdings were also diversified across several market sectors.
3. The rating reflects Standard & Poor's assessment of the overall credit
quality of the fund's portfolio, based primarily on the fund's stated investment
objectives and policies. It considers, for example, the credit quality of
portfolio investments and management. The rating does not reflect the yield or
the market price of the fund's shares nor approval by Standard & Poor's. The
rating is subject to change.
6
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PERFORMANCE SUMMARY
The Franklin California Insured Tax-Free Income Fund paid distributions totaling
33.6 cents ($0.336) per share for the six-month period ended December 31, 1994.
The fund's distribution rate was 5.70%, based on an annualization of the current
monthly dividend of 5.6 cents ($0.056) per share, and the maximum offering price
of $11.79 on December 31, 1994.
This tax-free rate is generally higher than the after-tax return on a comparable
taxable investment. For example, if you are in the maximum 46.2% combined
federal and California state income tax bracket, you would have to earn 10.59%
from a taxable investment to match your fund's tax-free distribution rate.
Dividends will vary based on the earnings of the fund's portfolio, and past
distributions are not necessarily indicative of future trends.
Bond prices and interest rates are generally inversely related. Thus, when
interest rates rise, as they did in 1994, bond prices tend to fall.
Consequently, the fund's share price, as measured by net asset value, fell 45
cents ($0.45), to $11.29 on December 31, 1994 from $11.74 on June 30, 1994.
Based on the dividend income and share price, the fund posted a total return of
- - -.99% and -5.31% for the six-months and one-year ended December 31, 1994,
respectively.
"GRAPHIC MATERIAL (3) OMITTED - SEE APPENDIX "
While negative returns are always disappointing, your fund's managers maintain a
long-term investment perspective and we encourage our shareholders to do the
same. More positive signs of a slowing economy should result in a gradual
decline in interest rates which, in turn, should have a positive impact on the
net asset value of your fund's shares.
The box below shows that the fund reported a 36.85% cumulative total return over
the five-year period ended December 31, 1994. Total return measures the change
in value of an investment during the period indicated. These calculations do not
include the maximum initial sales charge and assume reinvestment of dividends
and capital gains, if any. Past performance is not indicative of future results.
7
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FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND
Periods ended December 31, 1994
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SINCE
INCEPTION
1-YEAR 5-YEAR (9/03/85)
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Cumulative Total Return:(4) -5.31% 36.85% 103.21%
Average Annual Total Return:(5) -9.34% 5.55% 7.40%
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Distribution Rate:(6) 5.70%
Taxable Equivalent Distribution Rate:(7) 10.59%
30-Day Standardized Yield:(8) 5.58%
Taxable Equivalent Yield:(7) 10.37%
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4. Cumulative total returns show the change in value of an investment over the
periods indicated and do not include the current, maximum 4.25% initial sales
charge.
5. Average annual total returns represent the average annual change in value of
an investment over the stated periods. The figures have been restated to reflect
the current, maximum 4.25% initial sales charge.
6. Distribution rate is based on an annualization of the fund's current 5.6 cent
per share monthly dividend and the maximum offering price of $11.79 on December
31, 1994.
7. Taxable equivalent distribution rate and yield assume the 1994 maximum
combined 46.2% federal and California state income tax bracket, based on the
maximum federal income tax rate of 39.6%.
8. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended December 31, 1994.
Note: Prior to July 1, 1994, fund shares were offered at a lower initial sales
charge, with dividends reinvested at the offering price. Thus, actual total
returns for purchasers of shares during that period would have been different
than noted above below. Effective May 1, 1994, the fund eliminated the sales
charge on reinvested dividends and implemented a plan of distribution under Rule
12b-1, which will affect future performance. All total return calculations
assume reinvestment of dividends and capital gains at net asset value.
Investment return and principal value will fluctuate with market conditions and
you mat have a gain or loss when you well your shares. Past performance is not
indicative of future results.
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FRANKLIN CALIFORNIA TAX-FREE TRUST
FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND
- - -------------------------------------------------------------------------------
FUND OBJECTIVE:
To provide shareholders with high current income exempt from federal and
California state personal income taxes, consistent with the preservation of
capital.(1) The fund invests primarily in a portfolio of municipal bonds with an
average weighted maturity (the time during which the debt must be repaid)
between three and ten years.
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Strong economic growth throughout the U.S. and rising interest rates -- trends
that began in late 1993 and early 1994 -- accelerated during the last half of
'94. As reported in the fund's annual report last June, the Federal Reserve
Board began raising short-term interest rates in February 1994 in hopes of
slowing growth and controlling the inflation that usually accompanies economic
expansions. By the end of the reporting period, the federal funds rate -- the
rate banks charge each other for overnight loans -- had risen six times, to 5.5%
from 3.0%. While we view the actions of the Federal Reserve Board as positive on
a long-term basis, higher interest rates caused significant short-term price
volatility among all fixed-income securities.
Municipal bonds of all maturities experienced a disappointing year in 1994.
Rising interest rates caused bond prices to fall, since previously issued bonds,
with their lower yields, become less attractive than newer issues reflecting
current rates. On December 31, 1994, the average maturity of the securities held
in the portfolio was 8.6 years.
As discussed in the cover letter of this report, Orange County's financial
crisis increased investor uneasiness surrounding the municipal bond market,
particularly California's municipal bond market.
In light of this development, the fund's broad range of investments should help
to insulate it from problems experienced by any one municipality. On December
31, 1994, the fund's 245 holdings were invested among more than 111 issuers
state-wide, including cities, counties, and other municipalities. The chart on
page 10 shows how the fund's assets are also divided across a variety of market
sectors.
1. The fund will seek to comply with all federal and state regulations regarding
the payment of tax-exempt income dividends. For investors subject to the federal
alternative minimum tax, a small portion of these dividends may be subject to
such tax. Distributions of capital gains and of ordinary income from accrued
market discount, if any, are generally taxable.
9
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Moreover, we're pleased to report that the Franklin California Intermediate-Term
Tax-Free Income Fund has very limited direct exposure to Orange County. It is
important to note that this exposure, which represents but 1.57% of the fund's
total net assets, is invested in unenhanced dedicated revenue securities, which
are securities that are backed by the revenues from water bonds, airport
obligations, and sales tax-secured issues. At this time, the fund's managers do
not anticipate that these securities will encounter any difficulties in meeting
their scheduled payments.
The fund also holds a small portion of its assets in obligations issued by
municipalities that invested in Orange County's investment pool. We shall
continue to closely monitor the situation as these municipalities explore
solutions, including extending maturities on certain obligations. To date, none
of the municipalities contacted foresee any trouble in meeting their obligations
as they come due. All of these securities trade at a market value reflecting the
issues involved.
"GRAPHIC MATERIAL (4) OMITTED - SEE APPENDIX "
FOR A COMPLETE LIST OF PORTFOLIO HOLDINGS, SEE PAGE 30 OF THIS REPORT.
In selecting securities for the portfolio, we maintain a very conservative
approach. During the reporting period, purchases were confined generally to
securities rated "A" or above by nationally recognized rating services, such as
Moody's or Fitch, or by our internal analysts.
Looking forward, more positive signs of a slowing economy should result in a
gradual decline in interest rates, which should have a positive impact on the
net asset value of your fund's shares.
10
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PERFORMANCE SUMMARY
Despite a difficult year, the Franklin California Intermediate-Term Tax-Free
Income Fund continued to meet its objective of providing high current income to
its shareholders. The fund paid distributions totaling 26.4 cents ($0.264) per
share for the six-month period ended December 31, 1994.(2) The fund's
distribution rate was 5.24%, based on an annualization of the current monthly
dividend of 4.4 cents ($0.044) per share and the maximum offering price of
$10.08 on December 31, 1994. This tax-free rate is generally higher than the
after-tax return on a comparable taxable investment.
The chart to the right illustrates that if you are in the maximum 46.2% combined
federal and California state income tax bracket, you would have to earn 9.74%
from a taxable investment to match your fund's tax-free distribution rate.
Dividends will vary depending on the earnings of the fund's portfolio, and past
distributions are not necessarily indicative of future trends.
Bond prices and interest rates are generally inversely related. Thus, when
interest rates rise, as they have recently, bond prices tend to fall. In
response to the recent increase in short-term interest rates, the value of the
securities in the fund's portfolio declined. Subsequently, the fund's share
price, as measured by net asset value, fell 35 cents ($0.35) to $9.85 on
December 31, 1994, from $10.20 on June 30, 1994.
"GRAPHIC MATERIAL (5) OMITTED - SEE APPENDIX "
Based on the dividend income and change in share price, the fund posted total
returns of -0.87% and -4.25%, respectively for the six-month and one-year
periods ended December 31, 1994. Total return measures the change in value of an
investment during the periods indicated. This calculation does not include the
maximum initial sales charge and assumes reinvestment of dividends and capital
gains, if any, at net asset value. Past performance is not predictive of future
results.
The risks of investing in a non-diversified fund, such as increased
susceptibility to adverse economic or regulatory developments, are described in
the prospectus.
2. Assume shares were purchased and held for the entire accrual period. Since
dividends accrue daily, your actual distributions will vary, depending on the
date you purchased your shares and any account activity during the month.
11
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FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND
Periods ended December 31, 1994
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SINCE
INCEPTION
1-YEAR (9/23/92)
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Cumulative Total Return(3) 4.25% 9.14%
Average Annual Total Return(4) -6.41% 2.89%
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Distribution Rate(5) 5.24%
Taxable Equivalent Distribution Rate(6) 9.75%
30-Day Standardized Yield(7) 5.48%
Taxable Equivalent Yield(6) 10.19%
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3. Cumulative total return measures the change in value of an investment over
the periods indicated and does not include the current, maximum initial sales
charge stated in the prospectus.
4. Average annual total returns represent the average annual change in value of
an investment over the periods indicated and reflect the current maximum 2.25%
initial sales charge.
5. Distribution rate is based on an annualization of the fund's current 4.4 cent
per share monthly dividend and the maximum offering price of $10.08 on December
31, 1994.
6. Taxable equivalent distribution rate and yield assume the 1994 maximum
combined 46.2% federal and California state income tax bracket, based on the
maximum federal income tax rate of 39.6%.
7. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended December 31, 1994.
Note: All total return calculations assume reinvestment of dividends and capital
gains. 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.
The manager of the fund has agreed to waive a portion of its management fees and
to assume responsibility for certain other expenses, which reduces expenses and
increases distribution rate, yield and total return to shareholders. If the
manager had not taken this action, the fund's distribution rate and total return
would have been lower, and yield for the period would have been 4.96%. The fee
waiver may be discontinued at any time.
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12
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FRANKLIN CALIFORNIA TAX-FREE TRUST
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STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED)
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<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
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LONG TERM INVESTMENTS 97.4%
BONDS 97.0%
$ 1,000,000 Alameda COP, Police Building and Equipment Financing Project, MBIA Insured,
7.25%, 08/01/15....................................................................... $ 1,030,360
2,000,000 Alameda County COP, Municipal Custody Receipts, Series 1, BIG Insured,
7.25%, 12/01/07....................................................................... 2,192,460
10,730,000 Alhambra COP, Police Facilities AD No. 91-1, AMBAC Insured, 6.75%, 09/01/23 ........... 10,715,193
12,200,000 Alhambra RDA, Tax Allocation, Refunding, Redevelopment Project, AMBAC
Insured, 5.85%, 05/01/23 ............................................................. 10,668,412
Anaheim COP,
3,240,000 Anaheim Memorial Hospital, AMBAC Insured, Pre-Refunded, 7.25%, 05/15/20 ............. 3,532,086
3,000,000 Anaheim Public Improvement Corp., Refunding, BIG Insured, 6.70%, 08/01/08 ........... 3,062,790
1,210,000 Refinancing Project, Series A, AMBAC Insured, Pre-Refunded, 7.50%, 05/01/11.......... 1,271,274
1,000,000 Anaheim COP, AMBAC Insured, Pre-Refunded, 6.75%, 10/01/10 ............................. 1,070,150
Anaheim Public Financing Authority Revenue, Refunding, Anaheim Electric
Utility Projects,
3,825,000 MBIA Insured, 5.60%, 10/01/16 ....................................................... 3,265,097
2,000,000 MBIA Insured, 5.625%, 10/01/22 ...................................................... 1,673,680
4,735,000 Antioch COP, Water Treatment Plant, MBIA Insured, Pre-Refunded, 7.875%,
07/01/14 ............................................................................. 5,062,094
3,485,000 Apple Valley USD, COP, MBIA Insured, Pre-Refunded, 6.875%, 09/01/21.................... 3,756,482
5,690,000 Arcata Joint Powers Financing Authority Revenue, Tax Allocation, Community
Development Project, Series A, AMBAC Insured, 6.00%, 08/01/23 ........................ 5,099,776
3,080,000 Azusa Public Financing Authority Revenue, Refunding, Water System Acquisition
Project, Series A, FGIC Insured, 5.50%, 07/01/13 ..................................... 2,676,828
4,150,000 Bakersfield Hospital Revenue, Refunding, Adventist Health System, MBIA Insured,
5.50%, 03/01/19 ...................................................................... 3,462,760
Baldy Mesa Water District, COP, Water System Improvement Project,
760,000 AMBAC Insured, 6.40%, 08/01/17....................................................... 730,208
1,170,000 AMBAC Insured, 6.45%, 08/01/24 ...................................................... 1,119,479
2,000,000 Barstow RDA, Tax Allocation, Central Redevelopment Project, Series A,
MBIA Insured, 6.25%, 09/01/22........................................................ 1,861,140
10,775,000 Bay Area Government Association, RDAR, Tax Allocation, Pool A2, CGIC Insured,
6.60%, 12/15/24....................................................................... 10,340,983
2,995,000 Benicia COP, Refunding, Water System Project, AMBAC Insured, 6.125%, 11/01/17.......... 2,781,576
5,900,000 Benicia USD, Series A, AMBAC Insured, 6.85%, 08/01/16 ................................. 5,908,378
Berkeley COP,
1,270,000 AMBAC Insured,7.50%, 06/01/19 ....................................................... 1,318,133
2,400,000 Civic Improvement Corp., AMBAC Insured, 7.00%, 06/01/15 ............................. 2,431,752
Big Bear Lake Water Revenue, Refunding,
720,000 FGIC Insured, 6.25%, 04/01/12 ....................................................... 691,344
400,000 FGIC Insured, 6.375%, 04/01/22 ...................................................... 379,468
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The accompanying notes are an integral part of these financial statements.
1
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FRANKLIN CALIFORNIA TAX-FREE TRUST
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STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
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<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
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LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Brea Public Finance Authority Revenue, Tax Allocation, Redevelopment Project,
$ 1,520,000 Series A, MBIA Insured, 7.00%, 08/01/15.............................................. $ 1,544,305
1,550,000 Series A, MBIA Insured, 6.75%, 08/01/22.............................................. 1,540,312
12,500,000 Series A, MBIA Insured, 7.00%, 08/01/23.............................................. 12,659,375
3,480,000 Series A, MBIA Insured, Pre-Refunded, 7.00%, 08/01/15 ............................... 3,772,703
7,500,000 Series A, MBIA Insured, Pre-Refunded, 7.00%, 08/01/23 ............................... 8,130,825
Brea RDA, Tax Allocation, Refunding, Redevelopment Project,
5,220,000 MBIA Insured, 5.75%, 08/01/23 ....................................................... 4,480,796
970,000 MBIA Insured, Pre-Refunded, 8.30%, 11/01/10 ......................................... 1,022,079
2,155,000 Buellton USD, Series A, MBIA Insured, 6.375%, 07/01/17................................. 2,050,224
320,000 Buena Park CRDA, Tax Allocation, Refunding, Central Business District,
Redevelopment Project, FGIC Insured, Pre-Refunded, 8.90%, 11/01/15 ................... 337,149
665,000 Burbank Waste Disposal Revenue, Series B, AMBAC Insured, 6.00%, 05/01/22............... 600,794
2,100,000 Calaveras County Water District, COP, AMBAC Insured, Pre-Refunded,
7.10%, 01/01/15 ...................................................................... 2,267,055
3,950,000 Calaveras County Water District Revenue, Refunding, COP, Water and Sewer
System Improvement Project, AMBAC Insured, 6.00%, 05/01/16 ........................... 3,613,104
California Educational Facilities Authority Revenue,
3,500,000 Pooled Facilities Program, MBIA Insured, 6.70%, 11/01/09............................. 3,522,855
1,800,000 Pooled Facilities Program, MBIA Insured, 7.625%, 11/01/12 ........................... 1,898,658
1,000,000 Pooled Facilities Program, MBIA Insured, 7.00%, 03/01/16 ............................ 1,016,690
California Health Facilities Financing Authority Revenue,
3,000,000 Adventist Health Systems West, Series A, MBIA Insured, 7.00%, 03/01/13 .............. 3,031,080
5,065,000 Adventist Health Systems West, Series B, MBIA Insured, 6.75%, 03/01/14............... 5,021,441
3,900,000 Catholic Health Care, Series A, AMBAC Insured, Pre-Refunded,
7.00%, 07/01/06 .................................................................... 4,190,511
8,405,000 Catholic Health Care, Series A, AMBAC Insured, Pre-Refunded,
7.00%, 07/01/20 .................................................................... 9,031,088
7,605,000 Centinela Hospital Medical Center, MBIA Insured, 6.50%, 09/01/08 .................... 7,543,171
150,000 Centinela Hospital Medical Center, Series A, MBIA Insured, Pre-Refunded,
9.375%, 09/01/15 ................................................................... 157,562
4,000,000 Marin General Hospital, Series A, CGIC Insured, 7.00%, 08/01/15 ..................... 4,016,000
11,110,000 San Diego Hospital Association, MBIA Insured, 6.625%, 05/01/19 ...................... 10,840,138
4,425,000 San Diego Hospital Association, Series A, MBIA Insured, 6.20%, 08/01/12.............. 4,185,254
4,850,000 San Diego Hospital Association, Series A, MBIA Insured, 6.20%, 08/01/20.............. 4,455,404
3,500,000 Scripps Memorial Hospital, Series A, MBIA Insured, 6.40%, 10/01/12................... 3,363,500
3,000,000 Sharp Temecula Hospital, MBIA Insured, 7.05%, 08/01/21............................... 3,032,370
California HFAR,
1,315,000 Series A, MBIA Insured, 7.15%, 08/01/11.............................................. 1,344,417
4,100,000 Series A, MBIA Insured, 8.20%, 02/01/20 ............................................. 4,286,755
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
- - --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
California HFAR, (cont.)
$ 3,450,000 Series A, MBIA Insured, 7.20%, 02/01/26 ............................................ $ 3,467,216
70,000 Series B, MBIA Insured, 8.50%, 02/01/05............................................. 72,808
1,815,000 Series B, MBIA Insured, 6.80%, 08/01/11............................................. 1,814,873
285,000 Series B, MBIA Insured, 8.625%, 08/01/15 ........................................... 286,724
9,750,000 California Public Capital Improvement Financing Authority Revenue, Pooled
Projects, Series B, BIG Insured, 8.10%, 03/01/18 .................................... 10,288,395
9,000,000 California State GO, AMBAC Insured, 6.30%, 09/01/06 .................................. 9,028,530
1,000,000 California State GO, Various Purposes, MBIA Insured, 6.00%, 10/01/21 ................. 895,170
California State Loan Purchase Authority Revenue, Loan Contract,
2,000,000 Series A, CGIC Insured, 7.75%, 10/01/08............................................. 2,178,700
3,365,000 Series A, CGIC Insured, Pre-Refunded, 7.80%, 10/01/18 .............................. 3,689,150
3,000,000 California State Public Works Board Lease Revenue, University of California
Project, Series A, AMBAC Insured, 6.40%, 12/01/16.................................... 2,880,540
California State University and Colleges, Student Union Revenue,
1,310,000 Bakersfield, Series A, MBIA Insured, 6.30%, 11/01/22 ............................... 1,228,505
2,375,000 San Bernardino, Series B, MBIA Insured, 6.30%, 02/01/22............................. 2,228,819
2,000,000 California Statewide Communities Development Authority Revenue, COP, Salk
Institute, Connie Lee Insured, 6.20%, 07/01/24 ...................................... 1,765,500
1,500,000 California Statewide Communities Development Corp., COP, San Diego State
University Foundation, Connie Lee Insured, 5.625%, 03/01/23 ......................... 1,224,210
1,000,000 Cambria Community Services District Revenue, COP, Wastewater Treatment
System, Upgrade, MBIA Insured, 6.90%, 11/01/24....................................... 1,010,320
2,485,000 Carpinteria Sanitation District, Capital Facilities Revenue, FGIC Insured,
6.25%, 07/01/14 ..................................................................... 2,366,863
2,000,000 Castaic Lake Water Agency, COP, Water System Improvement Project,
MBIA Insured, Pre-Refunded, 7.125%, 08/01/16 ........................................ 2,173,340
1,830,000 Central Basin Municipal Water District, COP, Century Reclamation Program,
FGIC Insured, Pre-Refunded, 6.875%, 02/01/16 ........................................ 1,959,180
Central Coast Water Authority Revenue, System Water Project, Regional Facilities,
2,500,000 AMBAC Insured, 6.50%, 10/01/14 ..................................................... 2,461,475
4,650,000 AMBAC Insured, 6.60%, 10/01/22 ..................................................... 4,556,721
3,035,000 Central School District, San Bernardino County, AMBAC Insured, 5.60%, 05/01/16 ....... 2,621,754
Central Union High School District, Imperial County,
890,000 Series A, AMBAC Insured, 5.50%, 08/01/17............................................ 760,167
1,005,000 Series A, AMBAC Insured, 5.50%, 08/01/18............................................ 855,687
5,000,000 Cerritos Public Financing Authority Revenue, Los Coyotes Redevelopment Project,
Series A, AMBAC Insured, 5.75%, 11/01/22............................................ 4,292,400
1,000,000 Chico Public Financing Authority Revenue, Southeast Chico Redevelopment
Project, Series A, FGIC Insured, 6.625%, 04/01/21.................................... 979,770
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
- - --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
$ 2,000,000 Chino Basin Regional Financing Authority Revenue, Refunding, Municipal Water
District, Sewer System Project, AMBAC Insured, 6.00%, 08/01/16 ....................... $ 1,830,760
3,590,000 Chino COP, RDA, Refunding, Water System Improvement Project, AMBAC Insured,
6.20%, 09/01/18 ...................................................................... 3,338,018
6,250,000 Chino, Ontario, Upland, Water Facilities Authority, COP, Refunding,
Agua de Lejos Projects, Series A, FGIC Insured, 6.75%, 10/01/11 ...................... 6,299,125
2,940,000 Chula Vista, Elementary School District, COP, MBIA Insured, 6.60%, 08/01/16 ........... 2,899,928
1,000,000 Clayton RDAR, Tax Allocation, Clayton Redevelopment Project, CGIC Insured,
5.55%, 08/01/20 ...................................................................... 833,640
1,500,000 Coachella Valley Recreation and Park District, 1915 Act, Refunding, Reassessment
District No. 94-1, MBIA Insured, 6.20%, 09/02/16 ..................................... 1,405,035
975,000 Concord RDA, Tax Allocation, Concord Center Redevelopment Project, AMBAC
Insured, Pre-Refunded, 8.875%, 07/01/16 .............................................. 1,046,575
Contra Costa County COP,
1,250,000 Buildings Acquisition Project, AMBAC Insured, 6.70%, 02/01/21........................ 1,233,250
1,000,000 Public Facilities Corp., BIG Insured, 7.80%, 06/01/08 ............................... 1,073,920
2,535,000 Contra Costa Mosquito Abatement District, COP, Refunding, Public Improvements
Project, CGIC Insured, 6.25%, 02/01/06 ............................................... 2,516,900
5,425,000 Coronado CDA, Tax Allocation, Coronado Community Development Project,
MBIA Insured, 6.375%, 09/01/23 ....................................................... 5,135,251
4,500,000 Covina COP, Housing Revenue, AMBAC Insured, 7.00%, 03/01/17............................ 4,523,445
1,105,000 Delano USD, Series A, CGIC Insured, 6.10%, 05/01/17.................................... 1,010,799
Desert Hot Springs RDA, Tax Allocation, Refunding, Redevelopment Project No. 1,
2,000,000 Series A, MBIA Insured, 5.350%, 09/01/14............................................. 1,674,700
2,735,000 Series A, MBIA Insured, 5.375%, 09/01/19............................................. 2,241,059
4,155,000 Dublin-San Ramon Services District, COP, AMBAC Insured, 7.00%, 12/01/20 ............... 4,219,901
East Bay MUD, Wastewater Treatment System Revenue,
1,000,000 AMBAC Insured, Pre-Refunded, 7.125%, 06/01/17 ....................................... 1,084,920
2,000,000 AMBAC Insured, Pre-Refunded, 7.20%, 06/01/20 ........................................ 2,176,740
East Bay MUD, Water System Revenue,
6,000,000 AMBAC Insured, 6.50%, 06/01/20 ...................................................... 5,804,280
2,000,000 AMBAC Insured, Pre-Refunded, 6.375%, 06/01/21........................................ 2,103,080
5,000,000 MBIA Insured, Pre-Refunded, 7.50%, 06/01/18 ......................................... 5,510,850
5,000,000 East Yolo Community Services District Revenue, Refunding, FGIC Insured,
Pre-Refunded, 7.25%, 06/01/15......................................................... 5,246,150
Eastern Municipal Water and Sewer District Revenue, COP,
1,000,000 FGIC Insured, Pre-Refunded, 6.75%, 07/01/08 ......................................... 1,070,080
1,400,000 Refunding, Series A, FGIC Insured, 6.30%, 07/01/20 .................................. 1,310,946
1,000,000 El Centro COP, AMBAC Insured, 6.875%, 06/01/09 ........................................ 1,016,330
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
- - --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
$ 5,960,000 El Cerrito RDA, Tax Allocation, Refunding, Redevelopment Project, Series A,
CGIC Insured, 6.80%, 07/01/19 ........................................................ $ 5,945,756
6,900,000 Eureka Public Financing Authority Revenue, Tax Allocation, Eureka Redevelopment
Project, CGIC Insured, Pre-Refunded, 7.40%, 11/01/12 ................................. 7,481,463
905,000 Fairfield COP, Refunding, Fairfield Utility Improvement Project, FGIC Insured,
7.35%, 04/01/15 ...................................................................... 928,919
Fairfield Public Financing Authority Revenue,
2,000,000 Fairfield Redevelopment Project, Series C, CGIC Insured, 5.25%, 08/01/13............. 1,648,340
5,000,000 Fairfield Redevelopment Project, Series C, CGIC Insured, 5.50%, 08/01/23............. 4,099,500
4,750,000 Municipal Park, ID No. 1, FGIC Insured, 6.30%, 07/01/23 ............................. 4,458,255
2,150,000 Refunding, Series B, MBIA Insured, 5.80%, 04/01/23 .................................. 1,869,403
1,265,000 Farmersville USD, Series A, AMBAC Insured, 5.70%, 07/01/18 ............................ 1,101,575
2,525,000 Fillmore Public Financing Authority Revenue, Refunding, Central City
Redevelopment Project, Series A, AMBAC Insured, 5.75%, 10/01/16....................... 2,246,896
Folsom Public Financing Authority Revenue, Refunding,
2,000,000 AMBAC Insured, 6.00%, 10/01/08....................................................... 1,902,880
1,000,000 AMBAC Insured, 6.00%, 10/01/12....................................................... 936,730
2,000,000 AMBAC Insured, 6.00%, 10/01/19....................................................... 1,829,500
5,850,000 Fontana RDA, Tax Allocation, Refunding, Southwest Industrial Park Project,
FGIC Insured, 6.125%, 09/01/25........................................................ 5,336,487
1,000,000 Fresno COP, City Hall Refinancing Project, AMBAC Insured, 6.25%, 08/01/19.............. 939,230
2,795,000 Fresno COP, Refunding, Conference Center/Arena Facilities Project, AMBAC
Insured, 7.60%, 04/01/13 ............................................................. 2,917,756
1,000,000 Fulton El Camino Recreational and Park District, COP, Series A, CGIC Insured,
Pre-Refunded, 6.375%, 12/01/11........................................................ 1,037,960
1,000,000 Glendale Hospital Revenue, Refunding, Adventist Health, Series A, MBIA Insured,
6.75%, 03/01/13 ...................................................................... 1,001,120
Glendale RDAR, Tax Allocation, Refunding, Central Glendale Redevelopment Project,
1,500,000 AMBAC Insured, 5.50%, 12/01/14....................................................... 1,284,570
4,255,000 AMBAC Insured, 5.60%, 12/01/17....................................................... 3,622,622
4,490,000 AMBAC Insured, 5.60%, 12/01/18....................................................... 3,810,932
9,775,000 AMBAC Insured, 6.00%, 12/01/20....................................................... 8,762,408
1,000,000 Goleta Water District Revenue, Refunding, COP, Goleta Reclamation Project,
FGIC Insured, 5.50%, 12/01/12 ........................................................ 872,130
2,000,000 Grand Terrace CDA, COP, Refunding, Civic Center Project, AMBAC Insured,
Pre-Refunded, 7.25%, 03/01/14......................................................... 2,090,500
2,000,000 Grossmont Hospital District Revenue, La Mesa, Series A, MBIA Insured,
Pre-Refunded, 8.00%, 11/15/17......................................................... 2,176,460
1,000,000 Hercules COP, Refunding, Capital Improvement Projects, AMBAC Insured,
6.00%, 06/01/15 ...................................................................... 917,490
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
- - --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
$ 3,425,000 Hesperia Water District, COP, Refunding, Water Facilities Improvement Projects,
FGIC Insured, 7.15%, 06/01/26 ........................................................ $ 3,535,559
5,875,000 Imperial Irrigation District, COP, Electric System Project, MBIA Insured,
6.00%, 11/01/15 ...................................................................... 5,385,495
2,260,000 Industry, City of, Public Works Capital Improvement, FGIC Insured, Pre-Refunded,
6.80%, 07/01/15 ...................................................................... 2,410,606
8,535,000 Kern County Board of Education, COP, Administration Building Financing Project,
MBIA Insured, 6.20%, 02/01/23 ........................................................ 7,866,795
Kern County High School District,
1,535,000 CGIC Insured, 6.625%, 08/01/14 ...................................................... 1,530,733
1,400,000 CGIC Insured, 6.625%, 08/01/15 ...................................................... 1,396,024
3,460,000 King City Joint Union High School District, Series A, AMBAC Insured,
6.30%, 08/01/19 ...................................................................... 3,238,975
3,080,000 La Mirada RDA, Industrial Commercial Redevelopment Project, Series A,
MBIA Insured, 6.60%, 08/15/21 ........................................................ 3,008,112
Lake Arrowhead Community Services District, COP, Refunding,
7,600,000 FGIC Insured, 6.125%, 06/01/05....................................................... 7,533,272
14,000,000 FGIC Insured, 6.50%, 06/01/15........................................................ 13,689,760
4,000,000 San Bernardino County, Series C, BIG Insured, Pre-Refunded, 7.80%, 09/01/10 ......... 4,323,280
Lake Elsinore Public Financing Authority Revenue, Tax Allocation, Lake Elsinore
Redevelopment Project,
1,335,000 Series A, FGIC Insured, 6.25%, 02/01/19 ............................................. 1,257,557
16,250,000 Series C, FGIC Insured, 6.625%, 02/01/17............................................. 16,035,988
2,500,000 Lakewood RDA, Subordinate Tax Allocation, Refunding, Town Center
Redevelopment Project, CGIC Insured, Pre-Refunded, 8.50%, 09/01/13 ................... 2,742,800
3,000,000 Lakewood RDA, Tax Allocation, Refunding, Redevelopment Project No. 1, Series A,
CGIC Insured, 6.50%, 09/01/17......................................................... 2,863,170
Lancaster RDA, Tax Allocation,
1,330,000 Combination Redevelopment Project Areas Library, MBIA Insured,
5.75%, 08/01/23 .................................................................... 1,138,733
2,020,000 Combination Redevelopment Project, Fire Protection, MBIA Insured,
5.75%, 08/01/23 .................................................................... 1,729,504
11,245,000 Refunding, Lancaster Redevelopment Project No. 5, MBIA Insured,
6.85%, 02/01/19 .................................................................... 11,268,502
Lincoln RDA, Tax Allocation, Local Government Finance Authority Revenue,
1,500,000 AMBAC Insured, 9.00%, 08/01/11....................................................... 1,667,775
480,000 AMBAC Insured, 9.00%, 08/01/12 ...................................................... 533,688
2,425,000 Lincoln USD, CFD No. 1, AMBAC Insured, 6.90%, 09/01/21 ................................ 2,446,655
1,250,000 Livermore Public Building COP, AMBAC Insured, 7.05%, 04/01/17.......................... 1,269,887
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
- - --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
$ 2,000,000 Local Government Finance Authority Revenue, Refunding, Bunker Hill Project,
AMBAC Insured, Pre-Refunded, 6.75%, 12/01/14 ......................................... $ 2,136,520
8,800,000 Lodi COP, Refunding, Wastewater Treatment Project, AMBAC Insured,
6.70%, 08/01/26 ...................................................................... 8,730,920
Loma Linda Hospital Revenue, Loma Linda University Medical Center Project,
1,910,000 Refunding, Series B, AMBAC Insured, 7.00%, 12/01/15.................................. 1,933,684
2,500,000 Series B, MBIA Insured, Pre-Refunded, 7.00%, 12/01/10 ............................... 2,709,575
980,000 Series E, AMBAC Insured, 9.125%, 12/01/05............................................ 1,034,037
2,500,000 Long Beach RDA, Refunding, Downtown Redevelopment Project, Series A,
AMBAC Insured, Pre-Refunded, 7.75%, 11/01/10 ......................................... 2,740,450
3,500,000 Los Angeles Convention and Exhibition Center, COP, AMBAC Insured,
Pre-Refunded, 7.00%, 08/15/21......................................................... 3,783,850
3,000,000 Los Angeles County Capital Assets Leasing Corp., Leasehold Revenue, Refunding,
AMBAC Insured, 6.00%, 12/01/16........................................................ 2,747,520
8,050,000 Los Angeles County COP, Correctional Facilities Project, MBIA Insured,
6.50%, 09/01/13 ...................................................................... 7,895,842
Los Angeles County COP, Refunding, San Pedro Peninsula Hospital Project,
5,825,000 AMBAC Insured, 6.25%, 05/01/15 ...................................................... 5,462,102
1,000,000 AMBAC Insured, Pre-Refunded, 8.75%, 05/01/15 ........................................ 1,034,390
Los Angeles County Transportation Authority Revenue, Commission Sales Tax,
15,000,000 FGIC Insured, Pre-Refunded, 6.75%, 07/01/18 ......................................... 16,051,200
1,440,000 Series A, FGIC Insured, Pre-Refunded, 6.75%, 07/01/20 ............................... 1,540,916
2,740,000 Series B, FGIC Insured, 6.50%, 07/01/13 ............................................. 2,668,212
5,025,000 Series B, FGIC Insured, 6.50%, 07/01/15 ............................................. 4,859,527
500,000 Los Angeles CRDA, Tax Allocation, Hollywood Redevelopment Project, Series B,
MBIA Insured, 6.10%, 07/01/22 ........................................................ 456,710
Los Angeles Department of Water and Power Electric Plant Revenue,
15,000,000 FGIC Insured, 6.125%, 01/15/33 ...................................................... 13,609,200
2,000,000 MBIA Insured, 6.00%, 08/15/32 ....................................................... 1,781,120
3,500,000 Refunding, FGIC Insured, 6.00%, 02/01/28 ............................................ 3,128,965
Los Angeles Mortgage Revenue, Refunding,
2,000,000 Series I, MBIA Insured, 6.50%, 07/01/22 ............................................. 1,897,280
4,735,000 Series II-E, MBIA Insured, 5.625%, 07/01/22 ......................................... 3,960,212
Los Angeles Wastewater System Revenue,
1,000,000 FGIC Insured, 6.70%, 08/01/12 ....................................................... 1,002,230
2,000,000 MBIA Insured, Pre-Refunded, 7.00%, 02/01/13 ......................................... 2,143,620
2,000,000 Refunding, Series A, MBIA Insured, 5.70%, 06/01/20 .................................. 1,724,760
5,500,000 Series A, MBIA Insured, Pre-Refunded, 7.10%, 02/01/21 ............................... 5,914,755
6,130,000 Series B, AMBAC Insured, Pre-Refunded, 7.10%, 06/01/18 .............................. 6,604,339
15,000,000 Series D, MBIA Insured, Pre-Refunded, 6.70%, 12/01/21 ............................... 16,034,100
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
- - --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
$ 4,000,000 Lynwood Public Financing Authority Revenue, Series A, AMBAC Insured,
5.75%, 09/01/18 ..................................................................... $ 3,483,720
4,000,000 Madera RDA, Tax Revenue, Refunding, Madera Redevelopment Project Area,
CGIC Insured, 5.80%, 09/01/23 ....................................................... 3,413,760
4,500,000 Marysville Hospital Revenue, Fremont Rideout Health Group, AMBAC Insured,
6.30%, 01/01/22 ..................................................................... 4,218,210
Menlo Park CDA, Tax Allocation, Las Pulgas Community Project,
13,265,000 AMBAC Insured, 6.625%, 10/01/21..................................................... 12,978,874
3,095,000 AMBAC Insured, 6.70%, 10/01/22 ..................................................... 3,056,158
5,600,000 Mesa Construction Water District COP, Water Project, FGIC Insured,
6.40%, 03/15/18 ..................................................................... 5,358,584
2,000,000 Modesto COP, Municipal Improvement, FGIC Insured, Pre-Refunded,
7.30%, 11/01/20 ..................................................................... 2,161,740
5,000,000 Modesto COP, Water System Improvement Project, AMBAC Insured,
6.25%, 10/01/22 ..................................................................... 4,652,400
Modesto Health Facilities Revenue, Memorial Hospital Association,
5,565,000 Refunding, Series A, MBIA Insured, 6.00%, 06/01/18 ................................. 5,034,767
1,500,000 Series 1991, MBIA Insured, 6.875%, 06/01/21 ........................................ 1,505,055
3,000,000 Modesto Irrigation COP, Refunding & Capital Improvements Project, Series A,
MBIA Insured, 6.00%, 10/01/21 ....................................................... 2,702,370
6,745,000 Modesto Irrigation District, COP, Crossover Refunding, Geysers Geothermal
Power Project, BIG Insured, 5.00%, 10/01/17 ......................................... 5,265,147
2,000,000 Modesto Irrigation District, Financing Authority Revenue, Domestic Water Project,
Series A, AMBAC Insured, 6.125%, 09/01/19............................................ 1,850,660
4,000,000 Modesto Wastewater Treatment Facilities Revenue, Refunding, AMBAC Insured,
8.00%, 11/01/07 ..................................................................... 4,246,440
2,000,000 Monrovia RDA, Public Parking Facilities, Lease Revenue, Refunding, Series A,
AMBAC Insured, 5.20%, 04/01/13....................................................... 1,662,800
1,000,000 Monte Diablo Hospital District Revenue, Series A, AMBAC Insured, Pre-Refunded,
7.00%, 12/01/17 ..................................................................... 1,083,830
Monte Diablo USD, CFD No. 1, Special Tax,
500,000 AMBAC Insured, 6.25%, 08/01/14 ..................................................... 476,160
1,000,000 FGIC Insured, 7.05%, 08/01/20 ...................................................... 1,016,880
250,000 Montebello CRDA, Tax Allocation, Refunding, Montebello Hills Redevelopment
Project, AMBAC Insured, Pre-Refunded, 8.90%, 04/15/10 ............................... 255,707
720,000 Montebello USD, COP, Series B, MBIA Insured, 7.25%, 06/01/10.......................... 752,090
3,215,000 Monterey County, COP, Refunding, Sheriffs Facilities Project, CGIC Insured,
5.25%, 12/01/17 ..................................................................... 2,574,250
1,750,000 Morgan Hill RDAR, Tax Allocation, Ojo de Agua Community Development Project,
FGIC Insured, Pre-Refunded, 7.875%, 03/01/11 ........................................ 1,841,210
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
- - ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Moulton Niguel California Water District,
$ 1,420,000 AMBAC Insured, Pre-Refunded, 7.25%, 04/01/16 ........................................ $ 1,546,025
2,280,000 Refunding, Consolidated Improvement Districts, MBIA Insured, 5.25%, 09/01/13......... 1,890,553
3,310,000 Moulton Niguel California Water District, COP, AMBAC Insured, 5.375%, 09/01/13.......... 2,790,760
1,500,000 Mountain View COP, Improvement Financing Authority Revenue, City Hall/
Community Theatre, MBIA Insured, 6.50%, 08/01/16....................................... 1,457,625
2,535,000 Mountain View School District, Refunding, CFD, Special Tax, Series A, CGIC
Insured, 7.25%, 10/01/11 .............................................................. 2,629,936
2,000,000 National City Joint Powers Authority, Lease Revenue, National City Police Facilities
Project, AMBAC Insured, 6.75%, 10/01/17................................................ 2,004,940
North Tahoe PUD, COP, Refunding & Improvement, Water System Project,
545,000 AMBAC Insured, 5.15%, 02/01/10 ...................................................... 464,700
570,000 AMBAC Insured, 5.20%, 02/01/11 ...................................................... 483,155
600,000 AMBAC Insured, 5.25%, 02/01/12 ...................................................... 508,518
630,000 AMBAC Insured, 5.30%, 02/01/13 ...................................................... 531,953
665,000 AMBAC Insured, 5.35%, 02/01/14 ...................................................... 559,052
5,000,000 Northern California Power Agency Revenue, Multiple Capital Facilities, Series A,
MBIA Insured, 6.50%, 08/01/12 ......................................................... 4,922,650
Northern California Power Agency Revenue, Refunding, Public Power Hydroelectric
Project No. 1,
3,200,000 AMBAC Insured, Pre-Refunded, 7.50%, 07/01/23 ........................................ 3,432,000
8,960,000 Series A, AMBAC Insured, Pre-Refunded, 7.50%, 07/01/23 .............................. 9,448,230
Northern California Transmission Revenue, California/Oregon Transmission Project,
2,500,000 Series A, MBIA Insured, 6.25%, 05/01/10.............................................. 2,427,875
4,000,000 Series A, MBIA Insured, 6.50%, 05/01/16.............................................. 3,887,320
5,000,000 Series A, MBIA Insured, 5.25%, 05/01/20.............................................. 4,018,550
11,000,000 Series A, MBIA Insured, 6.00%, 05/01/24.............................................. 9,886,800
4,000,000 Series A, MBIA Insured, Pre-Refunded, 7.00%, 05/01/10 ............................... 4,298,480
18,050,000 Series A, MBIA Insured, Pre-Refunded, 7.00%, 05/01/24 ............................... 19,396,891
5,810,000 Norwalk Community Facilities Financing Authority, Lease Revenue, MBIA Insured,
6.90%, 02/01/21 ....................................................................... 5,848,462
7,000,000 Oakland RDA, Tax Allocation, Refunding, Central District Redevelopment Project,
AMBAC Insured, Pre-Refunded, 7.50%, 02/01/14 .......................................... 7,322,280
4,000,000 Oakland Special Revenue, Refunding, Series A, FGIC Insured, 7.60%, 08/01/21 ............ 4,201,320
3,940,000 Oceanside Community Development COP, Public Parking Project, CGIC Insured,
Pre-Refunded, 7.875%, 04/01/19 ........................................................ 4,502,790
Oceanside COP,
4,715,000 Corporation Yard Project, AMBAC Insured, Pre-Refunded, 7.30%, 08/01/21 .............. 5,203,898
5,000,000 Wateruse Finance Association of California, Series A, AMBAC Insured,
6.50%, 10/01/17..................................................................... 4,821,350
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
- - ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
$10,000,000 Ontario Redevelopment Financing Authority Revenue, Ontario Redevelopment
Project No. 1, MBIA Insured, 5.80%, 08/01/23 ......................................... $ 8,657,100
Orange County CFD No. 86-1, Special Tax, Rancho Santa Margarita,
5,000,000 Series A, CGIC Insured, 7.30%, 08/15/09............................................. 5,104,100
10,000,000 Series A, CGIC Insured, Pre-Refunded, 7.625%, 07/01/18 ............................. 10,879,500
Orange County COP,
11,250,000 Civic Center Expansion Project, AMBAC Insured, 6.70%, 08/01/18 ..................... 10,862,438
4,770,000 Juvenile Justice Center Facilities, AMBAC Insured, 6.375%, 06/01/11................. 4,525,967
5,000,000 Juvenile Justice Center Facilities, AMBAC Insured, 6.00%, 06/01/17.................. 4,438,250
3,500,000 Orange County Financing Authority Revenue, Tax Allocation, Refunding, Series A,
MBIA Insured, 6.50%, 09/01/22 ........................................................ 3,266,760
4,875,000 Orange County Sanitation District, FGIC Insured, Pre-Refunded, 6.75%, 08/01/13......... 5,219,126
5,200,000 Orange RDAR, Tax Allocation, Refunding, Southwest Redevelopment Project,
Series A, AMBAC Insured, 5.70%, 10/01/23.............................................. 4,339,660
600,000 Oroville RDA, Tax Allocation, Refunding, Redevelopment Project No. 1,
Series 1985-A, AMBAC Insured, Pre-Refunded, 8.90%, 11/01/15 .......................... 632,154
1,185,000 Otay Water District, COP, Water Facilities Project, MBIA Insured, 5.60%, 09/01/14...... 1,026,222
1,000,000 Oxnard Financing Authority Wastewater Revenue, Refunding, FGIC Insured,
5.50%, 06/01/14 ...................................................................... 857,170
3,735,000 Oxnard Public Facilities Corp., COP, AMBAC Insured, Pre-Refunded,
7.50%, 09/01/06 ...................................................................... 4,037,124
1,025,000 Palm Desert RDA, Tax Allocation, Project Area No. 1, Original Territory Only,
FGIC Insured, Pre-Refunded, 7.90%, 12/01/05 .......................................... 1,074,836
2,250,000 Palmdale Water District, COP, Littlerock Dam Project, Series A, MBIA Insured,
5.75%, 10/01/23 ...................................................................... 1,928,138
1,000,000 Petaluma COP, Refunding, Series A, AMBAC Insured, 5.625%, 08/01/13 .................... 877,100
8,000,000 Pico Rivera Public Financing Authority Revenue, Refunding, Water Enterprise
Project, Series A, FGIC Insured, 6.00%, 12/01/17...................................... 7,304,880
1,000,000 Pinole RDA, Tax Allocation, Pinole Vista Redevelopment Project, Series A,
MBIA Insured, 6.125%, 08/01/17........................................................ 928,050
1,500,000 Pittsburg Public Financing Authority, Wastewater Revenue, FGIC Insured,
Pre-Refunded, 6.80%, 06/01/22......................................................... 1,608,210
Pittsburg RDA, Tax Allocation, Refunding, Los Medanos Community
Development Project,
3,000,000 MBIA Insured, Pre-Refunded, 7.50%, 08/01/14 ........................................ 3,169,020
5,000,000 Series B, CGIC Insured, 5.70%, 08/01/32 ............................................ 4,141,200
4,700,000 Series B, CGIC Insured, 5.80%, 08/01/34 ............................................ 3,946,966
3,745,000 Placer County COP, Jail Kitchen Project, MBIA Insured, 6.90%, 10/01/21 ................ 3,759,381
1,285,000 Placer County Water Agency Revenue, COP, Refunding, MBIA Insured,
5.625%, 07/01/18 ..................................................................... 1,098,457
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
- - ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
$ 5,500,000 Pleasant Hill RDA, Tax Allocation, Refunding, Pleasant Hill Commons Project,
CGIC Insured, 6.90%, 07/01/21 ..................................................... $ 5,528,325
Port Hueneme RDA, Tax Allocation, Refunding, Central Community
Redevelopment Project,
2,000,000 AMBAC Insured, 5.50%, 05/01/23 .................................................. 1,659,860
1,915,000 Series A, AMBAC Insured, Pre-Refunded, 7.20%, 05/01/11 .......................... 2,004,775
Port of Oakland, Port Revenue,
1,500,000 Series B, BIG Insured, 7.25%, 11/01/16 .......................................... 1,524,645
1,165,000 Series C, BIG Insured, Pre-Refunded, 7.25%, 11/01/19 ............................ 1,236,939
Porterville COP, Refunding,
4,935,000 Sewer System and Improvement Project, AMBAC Insured, 6.30%, 10/01/18 ............ 4,684,598
6,075,000 Sewer System Project, AMBAC Insured, 6.30%, 10/01/18 ............................ 5,766,755
2,460,000 Poway RDA, Tax Allocation, Refunding, Parguay Redevelopment Project,
FGIC Insured, 5.75%, 12/15/26 ..................................................... 2,099,610
3,000,000 Ramona Municipal Water District, COP, Refunding, AMBAC Insured,
7.20%, 10/01/10 ................................................................... 3,143,190
Rancho Cucamonga RDA, Tax Allocation, Refunding, Rancho Redevelopment Project,
1,215,000 Series A, FGIC Insured, Pre-Refunded, 7.75%, 05/01/06 ........................... 1,303,088
9,690,000 Series A, FGIC Insured, Pre-Refunded, 7.70%, 05/01/16 ........................... 10,371,498
Rancho Water District, COP, Refunding,
4,420,000 AMBAC Insured, 7.125%, 11/01/15.................................................. 4,519,184
1,080,000 AMBAC Insured, Pre-Refunded, 7.125%, 11/01/15 ................................... 1,123,059
5,000,000 Redding Electric System Revenue, Refunding, COP, Series A, FGIC Insured,
5.50%, 06/01/11 ................................................................... 4,394,500
3,230,000 Redding Joint Powers Financing Authority, Water Revenue, Series A, AMBAC
Insured, 5.60%, 06/15/13 .......................................................... 2,816,786
2,120,000 Redding RDA, Tax Allocation, Hilltop, Cypress Redevelopment, Series C,
CGIC Insured, 6.00%, 09/01/22 ..................................................... 1,878,532
1,500,000 Redlands COP, Series C, MBIA Insured, Pre-Refunded, 7.00%, 12/01/10 ................ 1,625,745
2,115,000 Redlands USD, Series B, CGIC Insured, 6.25%, 06/01/19 ............................. 1,951,320
1,000,000 Redondo Beach RDA, Tax Allocation, South Bay Center Redevelopment Project,
FGIC Insured, 8.625%, 05/01/14 .................................................... 1,074,060
2,745,000 Redwood City, Public Financing Authority Revenue, Local Agency, Series A,
AMBAC Insured, 6.50%, 07/15/11..................................................... 2,731,220
Riverside RDA, Lease Revenue,
12,540,000 Series A, AMBAC Insured, 6.375%, 10/01/23........................................ 11,884,409
2,000,000 Series A, AMBAC Insured, 6.50%, 10/01/24......................................... 1,926,040
2,000,000 Rohnert Park Public Building, COP, MBIA Insured, Pre-Refunded, 7.125%, 07/01/17..... 2,171,700
11,800,000 Sacramento COP, MBIA Insured, 6.50%, 06/01/15....................................... 11,474,674
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
- - --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Sacramento MUD, Electric Revenue,
$ 1,000,000 Series R, FGIC Insured, Pre-Refunded, 7.125%, 02/01/13 ............................ $ 1,056,110
1,970,000 Series S, FGIC Insured, Pre-Refunded, 7.125%, 02/01/11 ............................ 2,080,537
2,530,000 Series S, FGIC Insured, Pre-Refunded, 6.625%, 02/01/17............................. 2,647,544
2,600,000 Series X, MBIA Insured, Pre-Refunded, 7.00%, 07/01/20 ............................. 2,808,052
3,000,000 Series Y, MBIA Insured, Pre-Refunded, 6.75%, 09/01/19.............................. 3,213,210
5,000,000 Series Y, MBIA Insured, Pre-Refunded, 6.50%, 09/01/21.............................. 5,287,050
2,000,000 Sacramento RDA, Tax Allocation, Merged Downtown Redevelopment Project A,
MBIA Insured, 6.50%, 11/01/13 ....................................................... 1,963,600
5,300,000 San Bernardino County COP, Refunding, Capital Improvement Projects,
MBIA Insured, 7.60%, 07/01/15 ....................................................... 5,596,270
5,680,000 San Bernardino County Mortgage Revenue, Refunding, Don Miguel Apartments
Project, MBIA Insured, 6.40%, 03/01/25 .............................................. 5,403,668
San Bernardino Joint Powers Financing Authority Revenue, Tax Allocation, Refunding,
1,965,000 Northwest Redevelopment Project, Series E, MBIA Insured, 7.375%, 01/01/15 ......... 2,040,122
3,515,000 Southeast Industrial Park, Series F, MBIA Insured, 7.375%, 03/01/14 ............... 3,661,681
4,265,000 State College Project No. 4, AMBAC Insured, 7.20%, 09/01/08 ....................... 4,449,163
2,060,000 State College Project, Series D, FGIC Insured, 7.375%, 09/01/10 ................... 2,163,206
4,750,000 San Bernardino Municipal Water and Sewer Department, COP, FGIC Insured,
6.25%, 02/01/17...................................................................... 4,484,380
2,382,000 San Bernardino RDA, Capital Appreciation, Series B, AMBAC Insured,
7.70%, 01/10/09 .................................................................... 3,506,494
2,000,000 San Buenaventura COP, Water Project, AMBAC Insured, Pre-Refunded,
7.50%, 10/01/20 ..................................................................... 2,212,900
2,000,000 San Diego Community College District, COP, Series 1991, MBIA Insured,
6.50%, 12/01/12 ..................................................................... 1,960,500
San Diego Mortgage Revenue, Refunding, University Canyon North,
345,000 Series A, MBIA Insured, 5.125%, 07/01/03........................................... 323,199
3,105,000 Series A, MBIA Insured, 5.75%, 07/01/25............................................ 2,615,155
San Diego RDA, Tax Allocation, Center City Redevelopment,
3,000,000 Series B, AMBAC Insured, 5.375%, 09/01/15 ......................................... 2,508,750
3,000,000 Series B, AMBAC Insured, 5.40%, 09/01/16 .......................................... 2,497,740
2,580,000 San Francisco BART District Revenue, Sales Tax, FGIC Insured, 6.60%, 07/01/12......... 2,566,713
San Francisco City and County Sewer Revenue,
730,000 AMBAC Insured, Pre-Refunded, 6.50%, 10/01/16 ...................................... 771,245
1,500,000 Series A, AMBAC Insured, Pre-Refunded, 7.25%, 10/01/15 ............................ 1,594,680
2,370,000 Series B, AMBAC Insured, Pre-Refunded, 7.25%, 10/01/15 ............................ 2,519,594
3,000,000 San Jacinto USD, COP, Refunding Project, AMBAC Insured, 6.50%, 10/01/23 .............. 2,857,620
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
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- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
- - ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
San Jose RDA, Tax Allocation, Merged Area Redevelopment Project,
$ 3,500,000 Refunding, Series A, MBIA Insured, Pre-Refunded, 7.50%, 08/01/09 ............... $ 3,697,190
1,250,000 Series A, AMBAC Insured, Pre-Refunded, 6.90%, 08/01/11.......................... 1,322,200
5,235,000 Series B, MBIA Insured, Pre-Refunded, 6.625%, 08/01/11.......................... 5,551,194
8,645,000 San Marcos Public Facilities Authority Revenue, Tax Allocation, Refunding,
Series A, CGIC Insured, 5.50%, 08/01/23 .......................................... 7,088,035
San Mateo County Transit District Revenue, Sales Tax,
4,100,000 Series A, MBIA Insured, 6.70%, 06/01/10......................................... 4,279,416
6,700,000 Series A, MBIA Insured, 6.50%, 06/01/20......................................... 6,952,456
San Ramon COP,
5,110,000 Central Park Expansion Project, CGIC Insured, 7.20%, 02/01/25................... 5,201,878
4,000,000 Public Financing Authority, CGIC Insured, Pre-Refunded, 7.80%, 01/01/19......... 4,272,080
12,070,000 Refunding, Capital Improvement Project, AMBAC Insured, 7.05%, 03/01/21.......... 12,247,308
1,000,000 Sanger USD, Series A, CGIC Insured, 5.60%, 08/01/14 ............................... 860,560
3,250,000 Santa Ana COP, Refunding, Parking Facilities Project, Series A, AMBAC Insured,
6.125%, 06/01/16 ................................................................. 3,011,125
2,790,000 Santa Ana CRDA, Tax Allocation, Refunding, South Main Street, Redevelopment
Project, Series A, FGIC Insured, Pre-Refunded, 7.375%, 12/01/16 .................. 2,956,340
1,000,000 Santa Ana Financing Authority Water Revenue, MBIA Insured, 6.125%, 09/01/24 ....... 913,120
15,000 Santa Ana HMR, Series A, FGIC Insured, 8.875%, 06/01/17 ........................... 15,284
Santa Barbara COP, Refunding,
3,575,000 Municipal Improvement Program, AMBAC Insured, 6.15%, 08/01/17................... 3,308,662
4,500,000 Water System Improvement Project, AMBAC Insured, 6.70%, 04/01/27 ............... 4,412,070
4,500,000 Santa Clara County COP, Partner Refunding Cap, Project I, AMBAC Insured,
6.25%, 10/01/16 .................................................................. 4,239,990
1,350,000 Santa Clara Electric Revenue, Series A, MBIA Insured, 6.50%, 07/01/21.............. 1,298,943
3,300,000 Santa Clara Local Government Finance Authority Revenue, Refunding, BIG
Insured, Pre-Refunded, 7.25%, 02/01/13 ........................................... 3,566,673
4,000,000 Santa Clara RDA, Tax Allocation, Refunding, Bayshore North Project, AMBAC
Insured, 7.50%, 06/01/08 ......................................................... 4,210,240
3,840,000 Santa Cruz County, COP, Sub-Joint Wastewater Treatment Project, AMBAC
Insured, 6.20%, 09/01/19 ......................................................... 3,574,579
3,600,000 Santa Cruz Hospital Revenue, Dominican Santa Cruz, Series A, MBIA Insured,
7.00%, 12/01/13 .................................................................. 3,624,732
11,830,000 Santa Fe Springs RDA, Tax Allocation, Redevelopment Project, Series A,
MBIA Insured, 6.40%, 09/01/22 .................................................... 11,214,248
2,750,000 Santa Fe Springs RDAR, Tax Allocation, Series A, AMBAC Insured, Pre-Refunded,
7.25%, 08/01/14 .................................................................. 2,984,602
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
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- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
- - ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Santa Maria COP, Local Water System, Refunding,
$ 3,675,000 FGIC Insured, 5.50%, 08/01/13 ................................................... $ 3,161,455
1,785,000 FGIC Insured, 5.50%, 08/01/21.................................................... 1,486,245
Santa Rosa High School District,
1,000,000 FGIC Insured, 5.90%, 05/01/16 ................................................... 898,320
1,050,000 Refunding, CGIC Insured, 5.75%, 05/01/18 ........................................ 916,335
2,000,000 Santa Rosa Wastewater Service Facilities District, Refunding & Improvement,
AMBAC Insured, 6.00%, 07/02/15 .................................................... 1,820,380
Santa Rosa Water Revenue,
1,115,000 Refunding, Series A, FGIC Insured, 5.25%, 09/01/12 .............................. 939,856
2,000,000 Series A, BIG Insured, Pre-Refunded, 7.60%, 09/01/17 ............................ 2,078,940
2,500,000 Series A, FGIC Insured, Pre-Refunded, 7.00%, 09/01/16 ........................... 2,690,475
2,000,000 Subregional Wastewater Project, Series A, AMBAC Insured, 6.50%, 09/01/16......... 1,927,900
3,450,000 Sebastopol CDA, Tax Allocation, Community Development Project, CGIC Insured,
6.85%, 12/01/20 ................................................................... 3,433,095
Selma Public Financing Authority Revenue,
145,000 Series A, MBIA Insured, 5.80%, 09/15/11.......................................... 132,672
125,000 Series A, MBIA Insured, 5.80%, 09/15/12.......................................... 113,430
2,400,000 Series A, MBIA Insured, 5.875%, 09/15/22......................................... 2,103,024
5,000,000 Simi Valley Public Financing Authority Revenue, Refunding, MBIA Insured,
5.75%, 09/01/23 ................................................................... 4,307,650
2,065,000 Solano County COP, Refunding, MBIA Insured, 7.375%, 10/01/02 ....................... 2,140,889
1,325,000 Sonoma CDA, COP, Refunding, Sonoma Creek Senior Housing Project,
AMBAC Insured, 6.75%, 02/01/13 .................................................... 1,326,696
6,500,000 South Coast Air Quality Management District Revenue, Refunding, Building Corp.,
MBIA Insured, 5.50%, 08/01/14 ..................................................... 5,592,925
10,000,000 South Orange County Public Financing Authority Revenue, Refunding, Special Tax,
Senior Lien, Series A, MBIA Insured, 6.20%, 09/01/13 .............................. 9,440,600
Southern California Public Power Authority Revenue,
2,500,000 Refunding, Palo Verde Project, Series B, FGIC Insured, 5.75%, 07/01/17........... 2,186,825
8,000,000 Refunding, Sub-Crossover, Southern Transmission Project, MBIA Insured,
5.75%, 07/01/21................................................................. 6,853,360
2,340,000 Refunding, Transmission Project, Series B, FGIC Insured, 7.375%, 07/01/21........ 2,458,825
4,000,000 Southgate Public Financing Authority Revenue, Tax Allocation, Southgate
Redevelopment Project No. 1, AMBAC Insured, 5.875%, 09/01/24 ...................... 3,507,560
3,750,000 Stanton RDA, Tax Allocation, Refunding, Stanton Community Development Project,
AMBAC Insured, 5.45%, 12/01/17..................................................... 3,109,725
4,000,000 Stockton COP, Wastewater Facility, AMBAC Insured, Pre-Refunded,
7.40%, 09/01/10 ................................................................... 4,300,840
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
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- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
- - ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
$ 1,640,000 Stockton-East Water District, COP, Series A, AMBAC Insured, Pre-Refunded,
7.30%, 04/01/20 ........................................................................ $ 1,789,224
4,260,000 Suisun City RDA, Tax Allocation, Refunding, Suisun City Redevelopment Project,
MBIA Insured, 5.625%, 10/01/13 ......................................................... 3,713,442
800,000 Sulphur Springs USD, COP, Series 1991, AMBAC Insured, 7.20%, 02/01/21 ................... 813,704
5,485,000 Sunnyvale RDA, Parking Revenue, Refunding, AMBAC Insured, 6.50%, 10/01/22................ 5,280,135
2,785,000 Sunnyvale RDA, Tax Allocation, Refunding, Central Core Project, AMBAC Insured,
6.50%, 10/01/22 ........................................................................ 2,680,980
4,000,000 Susanville Public Financing Authority Revenue, Series A, AMBAC Insured,
6.30%, 09/01/17 ........................................................................ 3,792,200
1,335,000 Taft COP, Sewer Facilities Improvement Project, CGIC Insured, Pre-Refunded,
7.25%, 08/01/15 ........................................................................ 1,438,316
2,000,000 Tehachapi Water and Sewer Revenue, Refunding, MBIA Insured, 6.75%, 11/01/20.............. 1,978,040
4,000,000 Three Valleys Municipal Water District, COP, Refunding, Miramar Water Treatment,
Water Transmission and Hydroelectric Generating Facilities Project, MBIA Insured,
Pre-Refunded, 7.30%, 11/01/14........................................................... 4,263,120
765,000 Torrance COP, Refunding, Improvement Project, AMBAC Insured, 7.20%, 04/01/16 ............ 779,842
1,630,000 Tracy COP, Tracy Public Facilities Corp., FGIC Insured, Pre-Refunded,
8.10%, 01/01/08 ........................................................................ 1,724,295
2,300,000 Tracy COP, Wastewater Enterprise Financing, AMBAC Insured, 5.25%, 12/01/13 .............. 1,906,700
Tri-City Hospital District Revenue,
5,000,000 MBIA Insured, 7.90%, 02/01/18 ........................................................ 5,371,350
2,350,000 MBIA Insured, 6.00%, 02/01/22 ........................................................ 2,110,676
525,000 Refunding, Series A, MBIA Insured, Pre-Refunded, 9.00%, 02/01/15 ..................... 557,051
Truckee-Donner,
100,000 COP, PUD, Headquarters Complex Project, AMBAC Insured, Pre-Refunded,
7.75%, 02/01/12 ..................................................................... 104,860
2,925,000 Water System Improvement Project, MBIA Insured, 6.75%, 11/15/21....................... 2,906,690
Tulare County COP, Capital Improvement Project, Refunding,
4,000,000 Public Facilities Corp., BIG Insured, Pre-Refunded, 8.10%, 11/01/07 .................. 4,359,720
500,000 Series A, AMBAC Insured, Pre-Refunded, 8.75%, 12/15/02 ............................... 533,426
350,000 Series A, AMBAC Insured, Pre-Refunded, 8.80%, 12/15/05 ............................... 373,559
1,500,000 Tulare Sewer Revenue, Refunding, AMBAC Insured, 5.70%, 11/15/18 ......................... 1,298,535
115,000 Turlock Irrigation District, COP, Administrative Facilities Project, FGIC Insured,
6.75%, 01/01/13 ........................................................................ 115,574
7,125,000 Turlock Irrigation District Revenue, Refunding, Series A, MBIA Insured,
5.75%, 01/01/18 ........................................................................ 6,231,525
University of California Revenue,
6,100,000 Housing System, Group A, Series X, MBIA Insured, Pre-Refunded,
7.60%, 11/01/18 ..................................................................... 6,476,797
2,800,000 Housing System, Group A-2, BIG Insured, Pre-Refunded, 7.80%, 11/01/15................. 2,962,484
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
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- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
- - -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
$ 3,750,000 Multiple Purpose Project, Series A, AMBAC Insured, Pre-Refunded,
6.75%, 09/01/23 ............................................................... $ 3,997,762
1,000,000 Multiple Purpose Project, Series A, MBIA Insured, Pre-Refunded,
6.90%, 09/01/15 ............................................................... 1,058,870
1,500,000 Multiple Purpose Project, Series A, MBIA Insured, Pre-Refunded,
7.00%, 09/01/23 ............................................................... 1,591,965
Upland COP,
3,985,000 Refunding, Police Building Project, AMBAC Insured, 6.60%, 08/01/16 ............. 3,921,798
2,385,000 Water System Improvement Project, FGIC Insured, 6.60%, 08/01/16 ................ 2,347,174
2,000,000 Water System Improvement Project, FGIC Insured, Pre-Refunded,
7.75%, 08/01/16 ............................................................... 2,120,100
1,355,000 Vacaville Public Financing Authority Revenue, Tax Allocation, Refunding,
Vacaville Redevelopment Project, MBIA Insured, 6.35%, 09/01/22 ................... 1,279,296
4,855,000 Vallejo Revenue, Water Improvement Project, Series B, FGIC Insured,
6.50%, 11/01/14 .................................................................. 4,748,724
1,495,000 Vista USD, COP, MBIA Insured, 5.50%, 12/01/16...................................... 1,249,925
2,200,000 Walnut Valley Water District, COP, Badillo Grand Transmission Project, FGIC
Insured, 6.125%, 02/01/18 ........................................................ 2,035,418
1,800,000 Watsonville Solid Waste Revenue, MBIA Insured, 6.50%, 05/15/16 .................... 1,748,682
1,250,000 West Basin Municipal Water District, COP, Water Reclamation Project, AMBAC
Insured, Pre-Refunded, 6.85%, 08/01/16 ........................................... 1,342,100
4,185,000 West Sacramento Financing Authority Revenue, MBIA Insured, 6.25%, 09/01/16 ........ 3,948,213
3,340,000 West Sacramento RDA, Tax Allocation, West Sacramento Redevelopment Project,
MBIA Insured, 6.25%, 09/01/21 .................................................... 3,114,951
4,150,000 Whittier Health Facilities Revenue, Refunding, Presbyterian Intercommunity
Hospital, MBIA Insured, 6.50%, 06/01/10 .......................................... 4,101,985
2,340,000 Whittier Solid Waste Revenue, Refunding, Series A, AMBAC Insured,
5.375%, 08/01/14 ................................................................. 1,968,736
2,000,000 Whittier Water Revenue, Series A, AMBAC Insured, 5.625%, 06/01/17 ................. 1,727,440
750,000 Windsor Joint Powers Financing Authority, Wastewater Revenue, Refunding,
Series A, AMBAC Insured, 6.125%, 12/15/12......................................... 702,360
--------------
TOTAL BONDS (COST $1,352,022,176) .......................................... 1,328,168,925
--------------
(a)ZERO COUPON BONDS.4%
28,405,000 San Bernardino County SFMR, Series A, GNMA Insured, ETM 05/01/15,
(original accretion rate 7.90%), 05/01/22 (COST $4,277,785) ...................... 4,573,489
--------------
TOTAL LONG TERM INVESTMENTS (COST $1,356,299,961) .......................... 1,332,742,414
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
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STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND (NOTE 1)
- - --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
(b)SHORT TERM INVESTMENTS .3%
California Health Facilities Financing Authority Revenue,
$ 1,300,000 St. Joseph Health System, Series B, Daily VRDN and Put, 6.15%, 07/01/09..... $ 1,300,000
100,000 Sutter Health, Series A, Daily VRDN and Put, 6.15%, 03/01/20 ............... 100,000
3,100,000 Puerto Rico Commonwealth Government Development Bank, Refunding,
Weekly VRDN and Put, 5.15%, 12/01/15 ......................................... 3,100,000
--------------
TOTAL SHORT TERM INVESTMENTS (COST $4,500,000) .......................... 4,500,000
--------------
TOTAL INVESTMENTS (COST $1,360,799,961) 97.7% ..................... 1,337,242,414
OTHER ASSETS AND LIABILITIES, NET2.3% .............................. 31,832,384
--------------
NET ASSETS 100.0% .................................................. $1,369,074,798
==============
At December 31, 1994, the net unrealized depreciation based on
the cost of investments for income tax purposes of
$1,360,799,961 was as follows:
Aggregate gross unrealized appreciation for all investments in
which there was an excess of value over tax cost......................... $ 32,815,451
Aggregate gross unrealized depreciation for all investments in
which there was an excess of tax cost over value......................... (56,372,998)
--------------
Net unrealized depreciation................................................ $ (23,557,547)
==============
</TABLE>
PORTFOLIO ABBREVIATIONS:
1915 ACT - Improvement Bond Act of 1915
AD - Assessment District
AMBAC - American Municipal Bond Assurance Corp.
BART - Bay Area Rapid Transit
BIG - Bond Investors Guaranty Insurance Co.
CDA - Community Development Agency
CFD - Community Facilities District
CGIC - Capital Guaranty Insurance Co.
COP - Certificate of Participation
CRDA - Community Redevelopment Authority/Agency
ETM - Escrow to Maturity
FGIC - Financial Guaranty Insurance Co.
GNMA - Government National Mortgage Association
GO - General Obligation
HFAR - Housing Finance Agency Revenue
HMR - Home Mortgage Revenue
ID - Improvement District
MBIA - Municipal Bond Investors Assurance Corp.
MUD - Municipal Utility District
PUD - Public Utility District
RDA - Redevelopment Agency
RDAR - Redevelopment Agency Revenue
SFMR - Single Family Mortgage Revenue
USD - Unified School District
(a) Zero coupon bonds. The current effective yield may vary. The original
accretion rate will remain constant.
(b) Variable rate demand notes (VRDN's) 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 upon short notice prior to specified dates. The interest rate may
change on specified dates in relationship with changes in a designated rate
(such as the prime interest rate or U.S. Treasury bills rate).
The accompanying notes are an integral part of these financial statements.
17
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- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND (NOTE 1)
- - --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS 92.9%
$ 585,000 ABAG Finance Authority of Nonprofit Corps., COP, 5.50%, 06/01/03 ......................... $ 541,850
ABAG Finance Corp., COP Authority,
100,000 Refunding, Series A, 5.90%, 06/01/02................................................... 95,162
100,000 Series B, 6.40%, 10/01/03 ............................................................. 97,514
Alameda County COP,
100,000 Capital Projects, Series 1992, 6.25%, 06/01/06 ........................................ 95,983
395,000 Series 1994, 5.70%, 04/01/02 ......................................................... 376,518
420,000 Series 1994, 5.80%, 04/01/03 .......................................................... 398,366
440,000 Series 1994, 5.90%, 04/01/04 .......................................................... 415,430
Atascadero USD, COP, Measure B, Capital Project,
220,000 Series B, 5.20%, 08/01/03 ............................................................. 197,426
200,000 Series B, 5.30%, 08/01/04 ............................................................. 177,858
Auburn COP, Refunding,
65,000 Civic Center Project, 5.10%, 09/01/99 ................................................. 61,346
65,000 Civic Center Project, 5.30%, 09/01/00 ................................................. 60,717
70,000 Civic Center Project, 5.45%, 09/01/01 ................................................. 65,114
75,000 Civic Center Project, 5.60%, 09/01/02 ................................................. 69,400
80,000 Civic Center Project, 5.70%, 09/01/03 ................................................. 73,477
80,000 Civic Center Project, 5.75%, 09/01/04 ................................................. 72,698
Bakersfield Central District Revenue, Development Agency, Tax Allocation, Refunding,
295,000 Downtown Bakersfield Redevelopment, 6.00%, 04/01/01.................................... 285,896
310,000 Downtown Bakersfield Redevelopment, 6.10%, 04/01/02 ................................... 299,268
330,000 Downtown Bakersfield Redevelopment, 6.20%, 04/01/03 ................................... 317,434
350,000 Downtown Bakersfield Redevelopment, 6.30%, 04/01/04 ................................... 335,563
100,000 Bakersfield Hospital Revenue, Bakersfield Memorial Hospital Project, Series A,
5.70%, 01/01/00.......................................................................... 97,426
California Educational Facilities Authority Revenue, Refunding, Pooled College and
University Financing,
1,000,000 Refunding, Series B, 5.80%, 06/01/02 .................................................. 956,510
1,105,000 Series B, 5.90%, 06/01/03 ............................................................. 1,052,247
100,000 California Health Facilities Financing, San Diego Hospital Association, Series B,
MBIA Insured, 5.60%, 08/01/03 ........................................................... 96,441
California State Public Works, Board Lease Revenue, Department of Corrections,
Calpatria State Prison,
250,000 Imperial County, Series A, 6.125%, 09/01/04 ........................................... 244,205
750,000 Series A, 5.00%, 12/01/01.............................................................. 688,222
940,000 Series D, Susanville, 4.80%, 06/01/03 ................................................. 821,175
865,000 California Statewide CDA Revenue, COP, St. Joseph Health System Group,
6.00%, 07/01/06.......................................................................... 824,994
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
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- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND (NOTE 1)
- - ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS (CONT.)
California Statewide CDA Revenue, Refunding, COP, Health Facilities, Barton
Memorial Hospital,
$ 200,000 Series B, 5.70%, 12/01/00 ............................................................. $ 195,494
450,000 Series B, 6.40%, 12/01/05 ............................................................. 440,995
585,000 California Statewide Communities Development Corp., COP, Series A, Pacific Homes,
5.50%, 04/01/04.......................................................................... 530,449
350,000 Campbell COP, Refunding, Civic Center Project, 5.60%, 10/01/03 ........................... 327,677
200,000 Carson RDA Project, Area No. 1, Refunding, 6.10%, 10/01/02 ............................... 192,128
1,000,000 Central Joint Powers Health Financing Authority, COP, Refunding, Community
Central Hospital, 5.25%, 02/01/04 ....................................................... 885,820
100,000 Clovis COP, Water System Improvement Project, AMBAC Insured, 5.90%, 03/01/03.............. 98,785
Coalinga Public Financing Authority Revenue,
395,000 Series A, MBIA Insured, 4.75%, 08/01/01................................................ 363,688
410,000 Series A, MBIA Insured, 4.90%, 08/01/02 ............................................... 374,949
430,000 Series A, MBIA Insured, 5.00%, 08/01/03 ............................................... 391,033
455,000 Series A, MBIA Insured, 5.10%, 08/01/04 ............................................... 410,442
1,405,000 Series B, 6.00%, 09/15/03 ............................................................. 1,327,627
Commerce Joint Powers Financing Authority, Water Facilities, Lease Revenue, Refunding,
340,000 Series A, 5.50%, 10/01/02 ............................................................. 313,728
360,000 Series A, 5.625%, 10/01/03 ............................................................ 330,232
470,000 Series A, 5.75%, 10/01/04 ............................................................. 434,604
Compton Sewer Revenue,
120,000 Series 1993, 5.40%, 07/01/98........................................................... 117,035
125,000 Series 1993, 5.60%, 07/01/99........................................................... 121,392
130,000 Series 1993, 5.70%, 07/01/00........................................................... 124,978
140,000 Series 1993, 5.80%, 07/01/01........................................................... 133,815
150,000 Series 1993, 5.90%, 07/01/02........................................................... 142,605
155,000 Series 1993, 6.00%, 07/01/03........................................................... 146,628
165,000 Series 1993, 6.10%, 07/01/04........................................................... 155,377
175,000 Series 1993, 6.20%, 07/01/05........................................................... 164,105
185,000 Series 1993, 6.30%, 07/01/06........................................................... 172,821
Concord RDA, Tax Allocation, Refunding, Central Concord Redevelopment Project,
625,000 Series A, 5.50%, 07/01/02 ............................................................. 573,844
655,000 Series A, 5.62%, 07/01/03 ............................................................. 597,340
500,000 Contra Costa County MFHR, Byron Park Project, Series C, 6.00%, 07/20/03 .................. 489,880
1,305,000 Cupertino COP, Refunding, Series A, 5.25%, 01/01/03 ...................................... 1,216,195
Danville Financing Authority Revenue, Sycamore Valley,
340,000 Reassessment District No. 93-2, 5.40%, 09/02/01........................................ 322,320
535,000 Reassessment District No. 93-2, 5.60%, 09/02/02........................................ 504,141
255,000 Reassessment District No. 93-2, 5.70%, 09/02/03........................................ 238,917
1,040,000 Reassessment District No. 93-2, 5.80%, 09/02/04........................................ 969,270
</TABLE>
The accompanying notes are an integral part of these financial statements.
19
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- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND (NOTE 1)
- - ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS (CONT.)
$ 100,000 Desert Hospital District Revenue, COP, Desert Hospital Corp., CGIC Insured,
6.25%, 07/01/03........................................................................ $ 100,716
1,315,000 Elk Gove USD, COP, Education Facilities Project, AMBAC Insured, 5.10%, 12/15/03 ........ 1,200,819
920,000 Encinitas Union School District, COP, Measure B, Capital Projects, 5.20%, 09/01/03...... 850,365
Fontana COP, Refunding, Police Facilities Project,
330,000 Series 1993, 5.00%, 04/01/01......................................................... 303,197
350,000 Series 1993, 5.00%, 04/01/02......................................................... 316,124
365,000 Series 1993, 5.10%, 04/01/03 ........................................................ 326,135
1,150,000 Foster City Public Financing Authority Revenue, Community Development Project,
Series A, 5.60%, 09/01/03 ............................................................. 1,075,043
1,000,000 Fresno Joint Powers Financing Authority, Local Agency Revenue, Refunding,
Series A, 6.20%, 09/02/03 ............................................................. 956,120
Garden Grove CDA, Tax Allocation, Refunding, Garden Grove Community Project,
1,000,000 Series 1993, 5.00%, 10/01/99......................................................... 949,410
1,425,000 Series 1993, 5.40%, 10/01/04......................................................... 1,270,530
300,000 Garden Grove COP, Bahia Village/Emerald Isle Project, FSA Insured, 5.10%, 03/01/01...... 275,793
Glendale Parking Facilities, Joint Powers Authority Revenue,
215,000 Series A, 5.10%, 03/01/01............................................................ 197,985
255,000 Series A, 5.20%, 03/01/02 ........................................................... 232,320
125,000 Series A, 5.30%, 03/01/03 ........................................................... 112,756
1,500,000 Goleta Water District Revenue, COP, Refunding, Goleta Reclamation Project,
FGIC Insured, 5.50%, 12/01/08 ......................................................... 1,352,565
3,935,000 Hesperia Public Financing Authority Revenue, Series A, 5.80%, 10/01/03 ................. 3,661,518
Hollister RDA, Tax Allocation, Hollister Community Development Project,
525,000 Series 1994, 5.35%, 10/01/03 ........................................................ 471,923
550,000 Series 1994, 5.45%, 10/01/04 ........................................................ 490,155
585,000 Series 1994, 5.55%, 10/01/05 ........................................................ 517,233
Imperial County Local Transportation Authority, Sales Tax Revenue,
490,000 Series 1993, 5.50%, 05/01/04......................................................... 445,900
515,000 Series 1993, 5.50%, 05/01/05......................................................... 461,661
La Palma Community Development Commission, Tax Allocation, Refunding,
125,000 La Palma Community Development Project No. 1, 5.20%, 06/01/00 ....................... 110,395
130,000 La Palma Community Development Project No. 1, 5.40%, 06/01/01 ....................... 113,968
135,000 La Palma Community Development Project No. 1, 5.50%, 06/01/02 ....................... 116,753
145,000 La Palma Community Development Project No. 1, 5.60%, 06/01/03 ....................... 123,837
150,000 La Palma Community Development Project No. 1, 5.70%, 06/01/04 ....................... 126,638
160,000 La Palma Community Development Project No. 1, 5.80%, 06/01/05 ....................... 133,653
Lancaster RDA, Tax Allocation, Refunding,
35,000 Central Business District Redevelopment, 5.00%, 08/01/98............................. 33,342
35,000 Central Business District Redevelopment, 5.125%, 08/01/99............................ 32,980
35,000 Central Business District Redevelopment, 5.25%, 08/01/00............................. 32,582
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
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- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND (NOTE 1)
- - --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS (CONT.)
Lancaster RDA, Tax Allocation, Refunding, (cont.)
$ 40,000 Central Business District Redevelopment, 5.375%, 08/01/01......................... $ 36,902
40,000 Central Business District Redevelopment, 5.50%, 08/01/02 ......................... 36,609
45,000 Central Business District Redevelopment, 5.60%, 08/01/03 ......................... 40,829
45,000 Central Business District Redevelopment, 5.70%, 08/01/04 ......................... 40,505
50,000 Central Business District Redevelopment, 5.70%, 08/01/05 ......................... 44,482
50,000 Fox Field Redevelopment Project Area, 5.00%, 08/01/98 ............................ 47,632
55,000 Fox Field Redevelopment Project Area, 5.125%, 08/01/99 ........................... 51,826
55,000 Fox Field Redevelopment Project Area, 5.25%, 08/01/00 ............................ 51,200
60,000 Fox Field Redevelopment Project Area, 5.375%, 08/01/01 ........................... 55,352
65,000 Fox Field Redevelopment Project Area, 5.50%, 08/01/02 ............................ 59,489
65,000 Fox Field Redevelopment Project Area, 5.60%, 08/01/03 ............................ 58,976
70,000 Fox Field Redevelopment Project Area, 5.70%, 08/01/04 ............................ 63,007
75,000 Fox Field Redevelopment Project Area, 5.70%, 08/01/05 ............................ 66,722
990,000 Lemon Grove MFHR, Refunding, Hillside Terrace Apartments, 5.375%, 01/01/19 .......... 918,938
1,025,000 Loma Linda Hospital Revenue, Refunding, Loma Linda University Medical Center,
Series B, MBIA Insured, 5.00%, 12/01/04 ............................................ 914,690
Los Angeles County COP, Insured Health Clinic,
40,000 Series E, 4.60%, 12/01/99 ........................................................ 37,044
45,000 Series E, 4.75%, 12/01/00 ........................................................ 41,130
45,000 Series E, 4.85%, 12/01/01 ........................................................ 40,621
45,000 Series E, 4.95%, 12/01/02......................................................... 40,153
Los Angeles County Transport Commission, COP,
100,000 Series B, 5.90%, 07/01/00 ........................................................ 99,998
200,000 Series B, 6.00%, 07/01/01 ........................................................ 199,996
100,000 Los Angeles GO, Series A, 5.00%, 08/01/01 ........................................... 94,069
Los Angeles MFHR, Refunding,
180,000 Series G, FSA Insured, 4.50%, 01/01/99............................................ 172,962
200,000 Series G, FSA Insured, 4.50%, 07/01/99............................................ 191,312
165,000 Series G, FSA Insured, 4.65%, 01/01/00............................................ 157,167
210,000 Series G, FSA Insured, 4.65%, 07/01/00............................................ 199,177
175,000 Series G, FSA Insured, 4.80%, 01/01/01............................................ 165,333
220,000 Series G, FSA Insured, 4.80%, 07/01/01............................................ 207,009
185,000 Series G, FSA Insured, 4.90%, 01/01/02............................................ 173,432
235,000 Series G, FSA Insured, 4.90%, 07/01/02............................................ 219,466
205,000 Series G, FSA Insured, 5.00%, 01/01/03............................................ 190,795
245,000 Series G, FSA Insured, 5.00%, 07/01/03............................................ 227,208
220,000 Series G, FSA Insured, 5.10%, 01/01/04............................................ 203,381
260,000 Series G, FSA Insured, 5.10%, 07/01/04............................................ 239,551
600,000 Los Angeles Municipal Improvement Corp., Lease Revenue, Refunding, Central
Library Project, Series B, 4.875%, 06/01/01......................................... 551,664
</TABLE>
The accompanying notes are an integral part of these financial statements.
21
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- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED)(CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND (NOTE 1)
- - ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS (CONT.)
$1,000,000 Los Angeles USD, COP, Refunding, Multiple Property Project, FSA Insured,
5.00%, 11/01/04................................................................... $891,000
2,000,000 Lynwood Public Financing Authority Revenue, Series A, AMBAC Insured,
5.10%, 09/01/03 .................................................................. 1,842,980
515,000 Madera COP, Refunding, Madera Community Hospital, 5.10%, 03/01/03 ................. 462,975
Madera RDA, Tax Revenue, Refunding, Madera Redevelopment Project,
175,000 CGIC Insured, 5.15%, 09/01/02.................................................... 163,425
185,000 CGIC Insured, 5.25%, 09/01/03.................................................... 171,604
195,000 CGIC Insured, 5.35%, 09/01/04.................................................... 179,755
540,000 Merced Irrigation District, COP, Water Facilities Project, 6.125%, 11/01/03 ....... 512,303
715,000 Merced Public Financing Authority, Local Agency Revenue, Tax Allocation, Series A,
5.00%, 12/01/04................................................................... 632,310
MidPeninsula Regional Open Space District, COP, Special District Association
Finance Corp.,
510,000 Series 1993, 5.10%, 09/01/02 .................................................... 462,891
530,000 Series 1993, 5.20%, 09/01/03 .................................................... 476,486
100,000 Mohave Water Agency Improvement GO, District M-Morongo, 6.20%, 09/01/01 ........... 98,921
100,000 Morgan Hill RDA, Tax Allocation, Refunding, 5.70%, 03/01/01 ....................... 97,269
100,000 Mount Diablo Hospital District Revenue, Series A, AMBAC Insured, 5.10%, 12/01/03 .. 91,343
Mountain View Shoreline Regional Park, Community Tax Allocation,
335,000 Series A, 5.00%, 08/01/02 ....................................................... 285,527
785,000 Series A, 5.10%, 08/01/03 ....................................................... 659,800
540,000 Series A, 5.20%, 08/01/04 ....................................................... 448,076
500,000 New Haven USD, COP, Refunding, 5.30%, 07/01/01..................................... 480,395
300,000 Newark USD, COP, Crossover Refunding, 5.75%, 09/01/02.............................. 283,152
100,000 Northern California, Public Power Agency Revenue, Refunding, Geothermal Project
No. 3, Series A, 7.00%, 07/01/07.................................................. 103,729
1,745,000 Oakland USD, Alameda County COP, Refunding, 5.00%, 09/15/99 ....................... 1,631,907
1,175,000 Ontario Redevelopment Financing Authority Revenue, Project No. 1, MBIA Insured,
5.10%, 08/01/03 .................................................................. 1,083,467
800,000 Orange County Development Agency, Tax Allocation, Refunding, Santa Ana Heights
Project Area, 5.90%, 09/01/04 .................................................... 704,128
1,000,000 Orange County Local Transportation Authority, Sales Tax Revenues, Second Senior
Measure, FGIC Insured, 4.70%, 02/15/05 ........................................... 838,570
1,715,000 Paramount RDA, Tax Allocation, Refunding, Redevelopment Project, Area No. 1,
6.05%, 08/01/05................................................................... 1,600,747
100,000 Pasadena Community Development Commision Tax, Refunding, AMBAC Insured,
4.75%, 08/01/98................................................................... 97,317
Paso Robles Union School District,
1,635,000 COP, 5.75%, 08/01/03............................................................. 1,578,200
300,000 COP, Measure D, Capital Projects, Phase III, 5.75%, 08/01/02..................... 285,165
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
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FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND (NOTE 1)
- - ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS (CONT.)
Pismo Beach Public Financing Authority Revenue,
$ 45,000 Series 1993, 6.25%, 09/15/01..................................................... $ 44,178
50,000 Series 1993, 6.40%, 09/15/02..................................................... 49,134
50,000 Series 1993, 6.50%, 09/15/03..................................................... 49,054
55,000 Series 1993, 6.55%, 09/15/04..................................................... 53,687
1,685,000 Pleasant Hill RDA, RMR, Refunding, 5.40%, 02/01/05................................. 1,534,496
200,000 Pleasanton USD, COP, Refunding, 6.30%, 02/01/00 .................................. 199,990
Rialto RDA, Tax Allocation, Refunding, Industrial Redevelopment,
270,000 Series A, 5.40%, 09/01/02 ....................................................... 253,230
280,000 Series A, 5.50%, 09/01/03 ....................................................... 260,974
Riverside County Asset Leasing Corp., Leasehold Revenue, Riverside County
Hospital Project,
200,000 Series A, 5.90%, 06/01/02 ....................................................... 192,686
200,000 Series A, 6.00%, 06/01/04 ....................................................... 191,276
1,000,000 Sacramento MUD, Electric Revenue, Series E, 5.25%, 05/15/03 ....................... 936,230
San Bernardino City USD, COP, Refunding,
1,030,000 Series 1994, 4.625%, 05/01/02 ................................................... 913,414
1,185,000 Series 1994, 4.75%, 05/01/03 .................................................... 1,039,435
195,000 San Bernardino County Mortgage Revenue, Refunding, Don Miguel Apartments Project,
MBIA Insured, 6.00%, 09/01/03 .................................................... 192,018
San Clemente, 1915 Act, Refunding,
415,000 AD No. 85-1, 5.00%, 09/02/02 .................................................... 360,631
435,000 AD No. 85-1, 5.10%, 09/02/03 .................................................... 373,556
460,000 AD No. 85-1, 5.20%, 09/02/04 .................................................... 390,729
San Diego County COP,
100,000 Children's Center Project, 5.50%, 04/01/99 ...................................... 96,952
100,000 Children's Center Project, 6.00%, 10/01/02 ...................................... 96,811
470,000 San Diego Mortgage Revenue, Refunding, Mariners Cove, Series B, 5.125%, 09/01/03 .. 439,826
100,000 San Diego Port Facilities Revenue, Refunding, National Steel & Shipbuilding Co.,
6.60%, 12/01/02................................................................... 98,904
San Francisco City and County RDAR,
300,000 Hotel Tax Revenue, CGIC Insured, 5.80%, 07/01/01................................. 298,557
245,000 Hotel Tax Revenue, CGIC Insured, 5.90%, 07/01/02 ................................ 243,682
50,000 Refunding, Series A, MBIA Insured, 6.125%, 07/01/02 ............................. 50,046
400,000 San Joaquin County COP, General Hospital Project, 5.90%, 09/01/03 ................. 378,964
300,000 San Jose Financing Authority Revenue, Refunding, Convention Center Project,
Series C, 5.75%, 09/01/03 ........................................................ 285,648
600,000 San Juan USD, COP, Gold River Elementary School Project, 5.65%, 04/01/03........... 570,756
San Ramon COP,
80,000 Capital Improvements Project, 5.00%, 03/01/99.................................... 76,251
80,000 Capital Improvements Project, 5.10%, 03/01/00.................................... 75,162
</TABLE>
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED)(CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND (NOTE 1)
- - ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS (CONT.)
San Ramon COP, (cont.)
$ 85,000 Capital Improvements Project, 5.20%, 03/01/01.................................... $ 79,263
90,000 Capital Improvements Project, 5.30%, 03/01/02 ................................... 83,170
95,000 Capital Improvements Project, 5.40%, 03/01/03 ................................... 87,055
100,000 Capital Improvements Project, 5.50%, 03/01/04 ................................... 90,927
105,000 Capital Improvements Project, 5.60%, 03/01/05 ................................... 94,792
110,000 Capital Improvements Project, 5.70%, 03/01/06 ................................... 99,050
120,000 Capital Improvements Project, 5.75%, 03/01/07.................................... 107,399
125,000 Capital Improvements Project, 5.80%, 03/01/08 ................................... 111,246
3,035,000 San Ramon Valley USD, COP, Measure A, Capital Projects, Series A, 5.95%, 10/01/01.. 2,980,370
985,000 Santa Barbara RDA, Tax Allocation, Central City Redevelopment Project, 6.00%,
03/01/03 ......................................................................... 926,264
100,000 Santa Monica Parking Authority, Lease Revenue, Refunding Project, 6.00%,
07/01/03 . ....................................................................... 98,371
Sebastopol COP, Refunding,
200,000 Series 1994, 5.50%, 06/01/03 .................................................... 183,080
215,000 Series 1994, 5.60%, 06/01/04 .................................................... 195,338
240,000 Series 1994, 5.70%, 06/01/05 .................................................... 216,552
Selma Public Financing Authority Revenue,
100,000 Series A, MBIA Insured, 5.15%, 09/15/01.......................................... 94,020
100,000 Series A, MBIA Insured, 5.25%, 09/15/02 ......................................... 94,630
115,000 Series A, MBIA Insured, 5.50%, 09/15/04 ......................................... 108,873
120,000 Series A, MBIA Insured, 5.60%, 09/15/05 ......................................... 113,616
125,000 Series A, MBIA Insured, 5.65%, 09/15/06 ......................................... 117,453
135,000 Series A, MBIA Insured, 5.70%, 09/15/07 ......................................... 125,862
140,000 Series A, MBIA Insured, 5.70%, 09/15/08 ......................................... 128,863
150,000 Series A, MBIA Insured, 5.75%, 09/15/09 ......................................... 138,110
155,000 Series A, MBIA Insured, 5.75%, 09/15/10 ......................................... 141,524
100,000 Shasta Joint Powers Financing Authority Lease Revenue, Courthouse Improvement
Project, Series A, 5.80%, 06/01/00 ............................................... 95,799
50,000 Solano Beach COP, City Hall Project, 5.80%, 10/01/02............................... 48,217
Solano Beach COP, Justice Facility and Public Building Project,
1,855,000 Refunding, 5.10%, 10/01/99....................................................... 1,743,348
1,100,000 Refunding, 5.875%, 10/01/05...................................................... 1,019,304
South San Francisco, Capital Improvements Financing Authority Revenue, Refunding,
195,000 South San Francisco Conference Center, 5.70%, 09/01/02 .......................... 182,025
205,000 South San Francisco Conference Center, 5.80%, 09/01/03 .......................... 190,100
215,000 South San Francisco Conference Center, 5.90%, 09/01/04 .......................... 198,591
100,000 Southern California Rapid Transit District Revenue, Special Benefit AD No. A2,
5.80%, 09/01/01................................................................... 98,479
855,000 Suisun City RDA, Tax Allocation, Refunding, Suisun City Redevelopment Project,
MBIA Insured, 5.10%, 10/01/03 .................................................... 790,071
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED)(CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND (NOTE 1)
- - ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS (CONT.)
Sunline Transport Agency, COP, Transport Finance Corp.,
$ 450,000 Series B, 5.50%, 07/01/03 ....................................................... $414,122
445,000 Series B, 5.75%, 07/01/06 ....................................................... 399,979
100,000 Susanville Public Financing Authority Revenue, Series A, AMBAC Insured,
5.90%, 09/01/02................................................................... 99,748
Tahoe City PUD, COP, Capital Facilities Project,
290,000 Series B, 6.05%, 06/01/01 ....................................................... 283,382
835,000 Series B, 6.15%, 06/01/02 ....................................................... 813,691
545,000 Series B, 6.30%, 06/01/04 ....................................................... 526,623
Tehachapi Cummings County Water District, COP, Capital Improvement Project,
280,000 MBIA Insured, 5.50%, 08/01/04 ................................................... 263,315
300,000 MBIA Insured, 5.60%, 08/01/05 ................................................... 281,982
320,000 MBIA Insured, 5.75%, 08/01/06 ................................................... 300,931
Temecula RDAR, Tax Allocation, Temecula Redevelopment Project No. 1,
480,000 Series A, 5.40%, 02/01/00 ....................................................... 462,706
600,000 Series A, 5.40%, 02/01/04 ....................................................... 549,912
Templeton USD, COP, Measure C, Capital Projects,
375,000 Series A, Phase III, 5.00%, 03/01/03 ............................................ 339,166
580,000 Series A, Phase III, 5.00%, 03/01/05 ............................................ 507,036
Trinity County PUD, COP, Refunding, Electric District Facilities,
340,000 Series 1993, 5.80%, 04/01/01..................................................... 320,623
360,000 Series 1993, 5.90%, 04/01/02 .................................................... 337,010
380,000 Series 1993, 6.00%, 04/01/03 .................................................... 354,460
100,000 Torrance USD, COP, Series A, 5.85%, 10/01/99 ...................................... 96,827
200,000 Travis USD, Foxboro Elementary School Project, 6.30%, 09/01/02 .................... 194,440
100,000 Tuolumne County COP, Multiple Facilities Project, 5.80%, 06/01/98 ................. 98,157
Ventura County Flood Center District, Zone No. 003, Refunding,
265,000 Series 1994, 4.625%, 03/01/02.................................................... 239,899
280,000 Series 1994, 4.75%, 03/01/03 .................................................... 251,334
295,000 Series 1994, 4.875%, 03/01/04.................................................... 262,503
Ventura USD, COP,
305,000 Series A, 5.90%, 04/01/04 ....................................................... 289,979
320,000 Series A, 6.00%, 04/01/05 ....................................................... 304,246
340,000 Series A, 6.10%, 04/01/06 ....................................................... 322,242
365,000 Series A, 6.20%, 04/01/07 ....................................................... 344,940
385,000 Series A, 6.30%, 04/01/08 ....................................................... 362,889
410,000 Series A, 6.40%, 04/01/09 ....................................................... 385,195
600,000 Walnut Creek COP, Refunding, John Muir Medical Center, MBIA Insured, 4.80%,
02/15/04 ......................................................................... 523,218
</TABLE>
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED)(CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND (NOTE 1)
- - -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS (CONT.)
Watsonville RDA, Tax Allocation, Watsonville Redevelopment Project,
$ 510,000 Series 1993, 6.00%, 08/01/02 .................................................... $ 487,606
540,000 Series 1993, 6.10%, 08/01/03 .................................................... 514,058
-----------
TOTAL BONDS (COST $98,217,979) .............................................. 91,581,297
-----------
SHORT TERM INVESTMENTS 5.1%
4,500,000 California State RAN, Series A, 5.00%, 06/28/95 ................................... 4,507,110
500,000 (b)Southern California Public Power Authority Transmission Project Revenue,
Refunding, AMBAC Insured, Weekly VRDN and Put, 4.80%, 07/01/19.................... 500,000
-----------
TOTAL SHORT TERM INVESTMENTS (COST $5,019,295) .............................. 5,007,110
-----------
TOTAL INVESTMENTS (COST $103,237,274) 98.0% ............................... 96,588,407
OTHER ASSETS AND LIABILITIES, NET 2.0% .................................... 1,948,184
-----------
NET ASSETS 100.0% ......................................................... $98,536,591
===========
At December 31, 1994, the net unrealized depreciation based on the cost of
investments for income tax purposes of $103,237,274 was as follows:
Aggregate gross unrealized appreciation for all investments in which there
was an excess of value over tax cost ........................................ $ 14,875
Aggregate gross unrealized depreciation for all investments in which there
was an excess of tax cost over value ........................................ (6,663,742)
-----------
Net unrealized depreciation ................................................... $(6,648,867)
===========
</TABLE>
PORTFOLIO ABBREVIATIONS:
1915 ACT - Improvement Bond Act of 1915
ABAG - The Association of Bay Area Governments
AD - Assessment District
AMBAC - American Municipal Bond Assurance Corp.
CDA - Community Development Agency/Authority
CGIC - Capital Guaranty Insurance Co.
COP - Certificate of Participation
FGIC - Financial Guaranty Insurance Co.
FSA - Financial Security Assistance
GO - General Obligation
MBIA - Municipal Bond Investors Assurance Corp.
MFHR - Multi-Family Housing Revenue
MUD - Municipal Utility District
PUD - Public Utility District
RAN - Revenue Anticipation Notes
RDA - Redevelopment Agency
RDAR - Redevelopment Agency Revenue
RMR - Residential Mortgage Revenue
USD - Unified School District
(b) Variable rate demand notes (VRDN's) 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 upon short notice prior to specified dates. The interest rate may
change on specified date in relationship with changes in a designated rate
(such as the prime interest rate or U.S. Treasury bills rate).
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND (NOTE 1)
- - ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENTS 99.2%
$ 5,000,000 (b)ABAG Finance Authority Nonprofit Corp., COP, Lucile Salter Packard Project,
AMBAC Insured, Weekly VRDN and Put, 4.85%, 08/01/23 ................................ $ 5,000,000
6,533,000 (b)ABAG Revenue, Pooled Projects, Series 1987, Weekly VRDN and Put,
5.374%, 04/01/97.................................................................... 6,533,000
2,910,000 (b)Butte County Housing Authority MFR, Pine Tree Apartments Project, Weekly VRDN
and Put, 5.45%, 12/01/10............................................................ 2,910,000
(b)California Health Facilities Financing Authority Revenue,
400,000 Catholic Health Care, Series C, MBIA Insured, Weekly VRDN and Put,
5.25%, 07/01/20 ................................................................ 400,000
3,100,000 Pool Program, Weekly VRDN and Put, 5.80%, 09/01/20 ............................... 3,100,000
1,000,000 Refunding, St. Joseph Health System, Series A, Daily VRDN and Put,
6.15%, 07/01/13 ................................................................ 1,000,000
1,500,000 Santa Barbara Cottage Hospital, Series B, Weekly VRDN and Put, 5.30%, 09/01/05 1,500,000
400,000 St. Joseph Health System, Series B, Daily VRDN and Put, 6.15%, 07/01/09........... 400,000
2,500,000 Sutter Health, Series A, Daily VRDN and Put, 6.00%, 03/01/20...................... 2,500,000
7,200,000 Sutter Health, Series A, Daily VRDN and Put, 6.15%, 03/01/20...................... 7,200,000
California PCFA, PCR,
225,000 (b)Anaheim Citrus Products Co. Project, Weekly VRDN and Put, 5.40%, 12/01/95 ........ 225,000
4,300,000 Dow Chemical Co. Project, TECP, 3.70%, 01/04/95................................... 4,300,000
1,000,000 Dow Chemical Co. Project, TECP, 3.50%, 01/18/95................................... 1,000,000
2,600,000 (b)Homestake Mining, Series 1984-A, Weekly VRDN and Put, 5.90%, 05/01/04 ............ 2,600,000
4,700,000 (b)Occidental Geo/Santa Fe Geothermal, Monthly VRDN, Weekly Put,
3.70%, 09/01/13 ............................................................... 4,700,000
3,500,000 Refunding, Pacific Gas and Electric Corp., Series C, TECP, 3.25%, 01/06/95........ 3,500,000
5,000,000 Refunding, Pacific Gas and Electric Corp., Series C, TECP, 4.00%, 01/11/95........ 5,000,000
20,000,000 Refunding, Pacific Gas and Electric Corp., Series C, TECP, 3.95%, 01/12/95........ 20,000,000
4,700,000 Refunding, Pacific Gas and Electric Corp., TECP, 3.40%, 01/06/95 ................. 4,700,000
1,500,000 Refunding, Pacific Gas and Electric Corp., TECP, 3.75%, 01/10/95 ................. 1,500,000
4,000,000 Refunding, Pacific Gas and Electric Corp., TECP, 4.35%, 01/11/95 ................. 4,000,000
7,700,000 Refunding, Pacific Gas and Electric Corp., TECP, 3.35%, 01/23/95 ................. 7,700,000
700,000 (b)Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 6.15%, 10/01/06... 700,000
2,500,000 (b)Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 6.15%, 10/01/07... 2,500,000
4,500,000 (b)Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 6.15%, 10/01/09... 4,500,000
100,000 (b)Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 6.15%, 10/01/10... 100,000
12,800,000 (b)Refunding, Shell Oil Co. Project, Series B, Daily VRDN and Put, 6.15%, 10/01/11... 12,800,000
4,600,000 (b)Refunding, Shell Oil Co. Project, Series C, Daily VRDN and Put, 6.15%, 11/01/00... 4,600,000
8,200,000 (b)Southern California Edison Co., Series A, Daily VRDN and Put, 5.00%, 02/28/08..... 8,200,000
5,700,000 (b)Southern California Edison Co., Series B, Daily VRDN and Put, 5.00%, 02/28/08..... 5,700,000
3,900,000 (b)Southern California Edison Co., Series C, Daily VRDN and Put, 5.00%, 02/28/08..... 3,900,000
3,200,000 Southern California Edison Co., Series C, TECP, 3.85%, 01/30/95 .................. 3,200,000
1,000,000 Southern California Edison Co., Series C, TECP, 4.15%, 02/16/95 .................. 1,000,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND (NOTE 1)
- - ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENTS(CONT.)
California PCFA, PCR, (cont.)
$ 3,010,000 (b)Southern California Edison Co., Series D, Daily VRDN and Put, 5.00%, 02/28/08 $ 3,010,000
3,650,000 Southern California Edison Co., Series D, TECP, 3.85%, 01/30/95............................. 3,650,000
(b)California PCFA, Resource Recovery Revenue,
6,400,000 Atlantic Richfield Co. Project, Series A, Daily VRDN and Put, 5.15%, 12/01/24............... 6,400,000
2,000,000 Burney Forest Products Project, Series A, Daily VRDN and Put, 5.90%, 09/01/20............... 2,000,000
10,900,000 (b)California PCFA, Solid Waste Disposal Revenue, Shell Oil Co., Martinez Project,
Series A, Daily VRDN and Put, 5.05%, 10/01/24.................................................. 10,900,000
19,500,000 (b)California Public Capital Improvements Financing Authority Revenue, Pooled Project,
Series 1988-C, Quarterly VRDN, Put Option 03/15/95, 4.25%, 06/01/28 ........................... 19,500,000
55,020,000 California State RAN, Series A, 5.00%, 06/28/95................................................. 55,137,154
(b)California Statewide Communities Development Authority Revenue, COP,
7,700,000 Chevron Co., Daily VRDN and Put, 5.05%, 12/15/24............................................ 7,700,000
4,200,000 Refunding, House Ear Institution, Daily VRDN and Put, 5.75%, 12/01/18....................... 4,200,000
11,600,000 Refunding, St. Joseph Health System, Weekly VRDN and Put, 5.40%, 07/01/08 .................. 11,600,000
1,600,000 St. Joseph Health System Group, Daily VRDN and Put, 6.15%, 07/01/24 ........................ 1,600,000
(b)California Statewide Communities Development Corp. Revenue,
2,550,000 American Kleaner, Series C, Weekly VRDN and Put, 5.625%, 12/01/19........................... 2,550,000
1,700,000 Karcher Property Project, Series C, Weekly VRDN and Put, 5.625%, 12/01/19................... 1,700,000
2,620,000 (b)Chico MFMR, Webb Homes Project, Monthly VRDN, Weekly Put, 3.75%, 01/01/10 ...................... 2,620,000
1,700,000 (b)Chino USD, COP, Refunding, Capital Project, Series B, Weekly VRDN and Put,
4.90%, 09/01/08 ............................................................................... 1,700,000
(b)Concord MFMR,
8,700,000 Arcadian, Series A, Weekly VRDN and Put, 5.30%, 07/15/18 ................................... 8,700,000
500,000 Bel Air Apartments, Issue A, Weekly VRDN and Put, 5.65%, 12/01/16 .......................... 500,000
10,000,000 (b)Contra Costa County, TRAN, MFHR, Park Regency, Series A, Weekly VRDN
and Put, 5.50%, 08/01/32....................................................................... 10,000,000
9,000,000 (b)Contra Costa Transportation Authority, Sales Tax Revenue, Series A, Weekly VRDN
and Put, 5.65%, 03/01/09....................................................................... 9,000,000
5,900,000 (b)Daly City Housing Development Finance Agency, MFHR, Serramonte del Rey
Apartments, Series A, Weekly VRDN and Put, 5.75%, 12/01/07..................................... 5,900,000
(b)Duarte RDA, COP,
1,000,000 Johnson Duarte Project, Series B, Weekly VRDN and Put, 4.90%, 12/01/14 ..................... 1,000,000
1,700,000 Piken Duarte Partnership, Series A, Weekly VRDN and Put, 4.90%, 12/01/14 ................... 1,700,000
1,700,000 (b)Escondido MFHR, Morning View Terrace, Series A, Weekly VRDN and Put,
5.60%, 02/15/07 ............................................................................... 1,700,000
1,000,000 (b)Fontana MFMR, Oakcrest, Series A, Weekly VRDN and Put, 5.30%, 07/15/18 ......................... 1,000,000
16,200,000 (b)Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue, Weekly VRDN
and Put, 7.00%, 07/01/23 ...................................................................... 16,200,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
28
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND (NOTE 1)
- - ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENTS(CONT.)
(b)Fremont MFHR,
$10,000,000 Creekside Village Apartments, Series D, Weekly VRDN and Put, 5.00%, 09/01/07.... $ 10,000,000
400,000 Mission Wells Project, Series E, Weekly VRDN and Put, 5.80%, 09/01/07........... 400,000
1,000,000 (b)Golden Empire Schools Financing Authority, Kern High School District Project,
Weekly VRDN and Put, 5.85%, 12/01/20.............................................. 1,000,000
3,500,000 (b)Hayward Housing Authority, MFHR, Foothills Garden Apartments, Series A,
Weekly VRDN and Put, 5.40%, 12/01/06.............................................. 3,500,000
1,830,000 (b)Independent Cities Lease Finance Authority Revenue, Pooled Projects, Weekly VRDN
and Put, 4.90%, 06/01/98.......................................................... 1,830,000
900,000 (b)Irvine Apartment Development Revenue, San Rafael Apartments Project, Series A,
Daily VRDN and Put, 6.875%, 04/01/22 ............................................. 900,000
3,600,000 (b)Irvine Public Facilities and Infrastructure Authority, Lease Revenue, Capital
Improvement Project, Weekly VRDN and Put, 7.25%, 11/01/10......................... 3,600,000
900,000 (b)Lancaster RDA, MFHR, Westwood Park Apartments, Series 1985-K, Weekly VRDN
and Put, 5.50%, 12/01/07.......................................................... 900,000
(b)Los Angeles County Housing Authority, MFHR,
3,100,000 Canyon Country Villas Project, Series H, Weekly VRDN and Put, 5.40%, 12/01/07 .. 3,100,000
1,900,000 Harbor Cove Project, Series E, Weekly VRDN and Put, 5.40%, 10/01/06 ............ 1,900,000
4,500,000 Sand Canyon Ranch Project, Series F, Weekly VRDN and Put, 5.40%, 11/01/06 ...... 4,500,000
100,000 (b)Los Angeles County IDA, IDR, Weekly VRDN and Put, 5.40%, 10/01/04 .................. 100,000
3,000,000 Los Angeles County Local Educational Agencies, COP, TRAN, Series A,
4.50%, 07/06/95 .................................................................. 3,011,097
8,400,000 (b)Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue,
Refunding, Series A, MBIA Insured, Weekly VRDN and Put, 5.40%, 07/01/20 .......... 8,400,000
1,700,000 (b)Los Angeles County MFMR, Valencia Village Project, Series 1984-C, Weekly VRDN
and Put, 5.40%, 10/01/14.......................................................... 1,700,000
15,510,000 Los Angeles County TRAN, Series 1994, 4.50%, 06/30/95............................... 15,557,963
2,050,000 (b)Los Angeles County Transportation Commission, Sale Tax Revenue, Refunding,
Series A, FGIC Insured, Weekly VRDN and Put, 4.85%, 07/01/12 ..................... 2,050,000
(b)Los Angeles CRDA, COP,
1,000,000 Baldwin Hill Park, Weekly VRDN and Put, 5.625%, 12/01/14........................ 1,000,000
400,000 Broading Spring Center Program, Weekly VRDN and Put, 5.40%, 07/01/12 ........... 400,000
(b)Los Angeles MFHR,
13,000,000 Casden Project, Series K, Weekly VRDN and Put, 5.00%, 07/01/10 ................. 13,000,000
4,500,000 Lucas Studios Project, Series D, Weekly VRDN and Put, 5.75%, 12/01/21 .......... 4,500,000
500,000 Mariposa Gardens Projects, Series H, Weekly VRDN and Put, 5.50%, 09/01/15 ...... 500,000
5,650,000 Poinsettia Apartment Project, Series A, Weekly VRDN and Put, 5.75%, 07/01/19.... 5,650,000
2,005,000 (b)MidPennisula Regional Open Space District, Series A, Weekly VRDN and Put,
5.75%, 02/01/08 .................................................................. 2,005,000
100,000 (b)Oakland Health Facilities Revenue, Children's Medical Hospital, Weekly VRDN
and Put, 4.90%, 07/01/08.......................................................... 100,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
29
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND (NOTE 1)
- - ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENTS(CONT.)
$ 2,700,000 (b)Oceanside MFMR, Riverview Springs Apartments, Series A, Weekly VRDN and Put,
6.00%, 07/01/20................................................................... $ 2,700,000
(b)Ontario MFR,
1,900,000 Park Center Partners Project, Series A, Weekly VRDN and Put, 5.50%, 08/01/07.... 1,900,000
6,700,000 Refunding, Rental Housing, Series A, Weekly VRDN and Put, 5.71%, 03/01/18 ...... 6,700,000
1,830,000 Refunding, Rental Housing, Series B, Weekly VRDN and Put, 5.71%, 03/01/18 ...... 1,830,000
1,190,000 (b)Ontario RDA, MFHR, Daisy XX Association, Ltd. Project, Weekly VRDN and Put,
5.50%, 11/01/04 .................................................................. 1,190,000
(b)Orange County Apartment Development Revenue,
1,600,000 Bear Brand Apartments, Series 1985-Z, Weekly VRDN and Put, 6.10%, 11/01/07...... 1,600,000
1,600,000 Issue I, Park Ridge, Weekly VRDN and Put, 6.25%, 11/01/08 ..................... 1,600,000
100,000 Jessy L. Frost Project, Issue B, Weekly VRDN and Put, 5.40%, 03/01/09 .......... 100,000
4,700,000 Monarch Bay Apartments Project, Issue T, Weekly VRDN and Put, 7.60%, 10/01/07... 4,700,000
9,250,000 Refunding, The Lakes Projects, Series A, Weekly VRDN and Put, 6.75%, 12/01/06 .. 9,250,000
9,500,000 Riverbend Apartments Project, Weekly VRDN and Put, 6.50%, 04/01/06 ............. 9,500,000
1,000,000 Robinson Ranch Apartments Project, Series 1985-Y, Weekly VRDN and Put,
7.60%, 11/01/08 .............................................................. 1,000,000
3,400,000 Vintage Woods, Series E, Weekly VRDN and Put, 6.50%, 11/01/08 .................. 3,400,000
3,000,000 Vista Verde Apartments, Weekly VRDN and Put, 7.00%, 08/01/18 ................... 3,000,000
1,150,000 (b)Orange County HDAR, Lantern Pines Apartments Projects, Weekly VRDN and Put,
7.092%, 12/01/07.................................................................. 1,150,000
390,000 (b)Oxnard RDA, COP, Channel Islands Business Center, Weekly VRDN and Put,
5.70%, 07/01/05 .................................................................. 390,000
(b)Palm Springs CRDA, COP,
1,100,000 Hotel No. 2, Weekly VRDN and Put, 6.00%, 12/01/14 .............................. 1,100,000
900,000 Hotel No. 3, Weekly VRDN and Put, 6.00%, 12/01/14 .............................. 900,000
900,000 (b)Pasadena COP, Rose Bowl Improvement Project, Weekly VRDN and Put,
5.95%, 12/01/11 .................................................................. 900,000
1,500,000 (b)Pico Rivera RDA, COP, Crossroad Plaza Project, Weekly VRDN and Put,
5.40%, 12/01/10 .................................................................. 1,500,000
5,350,000 (b)Redlands MFHR, Refunding, Parkview Terrace, Series A, Weekly VRDN and Put,
5.45%, 02/01/16 .................................................................. 5,350,000
1,500,000 (b)Riverside County IDA, IDR, Calavo Growers, Weekly VRDN and Put, 6.25%, 09/01/05 .... 1,500,000
1,500,000 Riverside Transportation, Series A, TECP, 3.05%, 01/09/95........................... 1,500,000
10,400,000 (b)Roseville Finance Authority Hospital, Lease Revenue, Series A, Roseville Hospital,
Weekly VRDN and Put, 5.30%, 10/01/14.............................................. 10,400,000
4,000,000 (b)Sacramento County COP, Administration Center and Court House Project,
Weekly VRDN and Put, 5.25%, 06/01/20.............................................. 4,000,000
2,200,000 (b)Sacramento County COP, Telecommunications Project, Weekly VRDN and Put,
5.55%, 06/01/96 .................................................................. 2,200,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND (NOTE 1)
- - --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENTS (CONT.)
(b)Sacramento County MFHR,
$ 1,500,000 Series A, Weekly VRDN and Put, 5.60%, 04/15/07 ................................... $ 1,500,000
1,300,000 Series B, Weekly VRDN and Put, 5.60%, 04/15/07 ................................... 1,300,000
2,900,000 Series C, Weekly VRDN and Put, 5.60%, 04/15/07 ................................... 2,900,000
Sacramento MUD,
8,000,000 TECP, 3.65%, 01/05/95............................................................. 8,000,000
2,200,000 TECP, 3.70%, 01/10/95............................................................. 2,200,000
4,000,000 TECP, 3.75%, 01/11/95............................................................. 4,000,000
13,900,000 TECP, 3.40%, 01/23/95............................................................. 13,900,000
4,267,000 TECP, 3.85%, 01/30/95............................................................. 4,267,000
(b)Salinas City Apartment Development Revenue,
2,000,000 Brentwood Gardens, Series 1985-A, Weekly VRDN and Put, 5.50%, 03/01/05............ 2,000,000
3,000,000 Mariner Village, Series 1985-B, Weekly VRDN and Put, 5.50%, 04/01/05.............. 3,000,000
(b)San Bernardino,
2,250,000 Western Properties Project I, Weekly VRDN and Put, 6.50%, 02/01/05................ 2,250,000
2,000,000 Western Properties Project II, Weekly VRDN and Put, 6.50%, 05/01/05............... 2,000,000
900,000 Western Properties Project III, Weekly VRDN and Put, 6.50%, 08/01/05.............. 900,000
1,600,000 Western Properties Project IV, Weekly VRDN and Put, 6.50%, 08/01/05............... 1,600,000
2,550,000 Western Properties Project V, Weekly VRDN and Put, 6.50%, 08/01/05................ 2,550,000
2,300,000 Woodview Apartments Project, Series I, Weekly VRDN and Put, 6.25%, 04/01/07....... 2,300,000
25,000,000 San Diego USD, TRAN, 4.25%, 06/30/95................................................. 25,063,206
900,000 (b)San Dimas RDA, Commercial Development Revenue, San Dimas Commercial Center,
Monthly VRDN and Put, 3.60%, 12/01/13............................................... 900,000
7,100,000 (b)San Dimas RDA, COP, San Dimas Station I Project, Weekly VRDN and Put,
5.35%, 12/01/05..................................................................... 7,100,000
(b)San Francisco City and County MFHR,
4,415,000 Sutter/Post Apartments Projects, Series A, Weekly VRDN and Put, 5.60%, 03/01/18... 4,415,000
3,300,000 Winterland Project, Series C, Weekly VRDN and Put, 5.40%, 06/01/06................ 3,300,000
(b)San Francisco City and County RDA, MFR,
5,400,000 Bayside Village Project, Series B, Weekly VRDN and Put, 5.222%, 12/01/05.......... 5,400,000
5,600,000 Bayside Village Project, Series D, Weekly VRDN and Put, 5.222%, 12/01/05.......... 5,600,000
2,615,000 Rincon Center Project No. 8, Weekly VRDN and Put, 5.222%, 12/01/06 ............... 2,615,000
2,000,000 (b)San Francisco City and County RDA, Refunding, South Beach Harbor Project,
Weekly VRDN and Put, 5.45%, 12/01/16................................................ 2,000,000
500,000 (b)San Francisco City and County Revenue, San Francisco Symphony, Put Option
05/01/95, 3.25%, 11/01/06 .......................................................... 500,000
2,200,000 (b)San Joaquin County Transportation Authority, Sales Tax Revenue, Weekly VRDN
and Put, 5.30%, 04/01/11............................................................ 2,200,000
1,000,000 (b)San Jose MFMR, Somerset Park Apartment Project, Weekly VRDN and Put,
5.65%, 11/01/17..................................................................... 1,000,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
31
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND (NOTE 1)
- - -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENTS (CONT.)
$ 1,050,000 (b)San Mateo County COP, Capital Projects, Series B, Weekly VRDN and Put,
5.00%, 07/01/98 ...................................................................... $ 1,050,000
2,950,000 (b)San Mateo County Housing Authority, MFHR, Pacific Oaks Apartment Project,
Weekly VRDN and Put, 5.55%, 07/01/17.................................................. 2,950,000
2,000,000 San Mateo County School Districts, COP, TRAN, 4.50%, 06/30/95.......................... 2,005,125
7,500,000 (b)Santa Clara County Apartment Development Revenue, Lincoln-Pajaro Apartment
Project, Series A, Weekly VRDN and Put, 5.45%, 01/01/97 .............................. 7,500,000
1,000,000 (b)Santa Clara County, MFHR, Grove Garden Apartments, Series A, Weekly VRDN
and Put, 5.40%, 03/01/17.............................................................. 1,000,000
100,000 (b)Santa Clara Electric Revenue, Series A, Weekly VRDN and Put, 4.90%, 07/01/10 .......... 100,000
2,500,000 (b)Simi Valley IDA, EDR, Wambold Furniture Project, Series 1984, Monthly VRDN
and Put, 4.00%, 12/01/14.............................................................. 2,500,000
8,500,000 (b)Simi Valley MFHR, Lincoln Wood Ranch, Weekly VRDN and Put, 5.50%, 06/01/10 ............ 8,500,000
3,000,000 Sonoma County TRAN, 5.00%, 06/30/95.................................................... 3,011,206
500,000 (b)South San Francisco MFR, Magnolia Plaza Apartments, Series A, Weekly VRDN
and Put, 5.55%, 05/01/17.............................................................. 500,000
2,585,000 Southern California Public Power Authority Revenue, Refunding, Palo Verde Project,
Series A, 5.90%, 07/01/95 ............................................................ 2,612,585
27,500,000 (b)Southern Public Power Authority Revenue, Refunding, Transmission Project,
AMBAC Insured, Weekly VRDN and Put, 4.80%, 07/01/19 .................................. 27,500,000
7,000,000 (b)Suisun City MFMR, Housing Authority, Village Green Apartments, Seires A,
Weekly VRDN and Put, 5.30%, 06/15/18 ................................................. 7,000,000
1,000,000 (b)Union City MFHR, Refunding, Skylark Apartments, Project B, Weekly VRDN and Put,
6.00%, 11/01/07 ...................................................................... 1,000,000
1,500,000 (b)Upland Community RDA, MFHR, Pebble Grove, Series C, Weekly VRDN and Put,
6.30%, 03/01/14 ...................................................................... 1,500,000
6,975,000 (b)Visalia COP, Partner Visalia Convention Center Expansion, Weekly VRDN and Put,
5.90%, 12/01/15 ...................................................................... 6,975,000
------------
TOTAL INVESTMENTS (COST $686,363,336) 99.2% ................................. 686,363,336
OTHER ASSETS AND LIABILITIES, NET .8% ....................................... 5,793,667
------------
NET ASSETS 100.0% ........................................................... $692,157,003
============
</TABLE>
At December 31, 1994, there was no unrealized appreciation or depreciation for
financial statement or income tax purposes.
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, DECEMBER 31, 1994
(UNAUDITED) (CONT.)
FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND
- - --------------------------------------------------------------------------------
PORTFOLIO ABBREVIATIONS:
ABAG - The Association of Bay Area Governments
AMBAC - American Municipal Bond Assurance Corp.
COP - Certificate of Participation
CRDA - Community Redevelopment Agency
EDR - Economic Development Revenue
HDAR - Housing Development Authority Revenue
IDA - Industrial Development Agency
IDR - Industrial Development Revenue
MBIA - Municipal Bond Investors Assurance Corp.
MFHR - Multi-Family Housing Revenue
MFMR - Multi-Family Mortgage Revenue
MFR - Multi-Family Revenue
MUD - Municipal Utility District
PCFA - Pollution Control Financing Authority
PCR - Pollution Control Revenue
RAN - Revenue Anticipation Notes
RDA - Redevelopment Agency
TECP - Tax-Exempt Commercial Paper
TRAN - Tax and Revenue Anticipation Notes
USD - Unified School District
(b) Variable rate demand notes (VRDN's) 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 upon short notice prior to specified dates. The
interest rate may change on specified dates in relationship with changes in
a designated rate (such as the prime interest rate or U.S. Treasury Bills).
The accompanying notes are an integral part of these financial statements.
33
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - -------------------------------------------------------------------------------
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
FRANKLIN FRANKLIN CALIFORNIA FRANKLIN
CALIFORNIA INTERMEDIATE-TERM CALIFORNIA
INSURED TAX-FREE TAX-FREE TAX-EXEMPT
INCOME FUND INCOME FUND MONEY FUND
---------------- ------------------- ------------
<S> <C> <C> <C>
Assets:
Investments in securities:
At identified cost ....................................... $1,360,799,961 $103,237,274 $686,363,336
============== ============ ============
At value ................................................. 1,337,242,414 96,588,407 686,363,336
Cash ....................................................... 5,064,999 176,320 1,243,247
Receivables:
Interest ................................................. 26,871,218 1,756,981 4,867,103
Investment securities sold ............................... 3,391,153 20,000 --
Capital shares sold ...................................... 905,245 236,514 --
Prepaid expenses ........................................... 34,284 26,978 129,559
-------------- ------------ ------------
Total assets ........................................ 1,373,509,313 98,805,200 692,603,245
-------------- ------------ ------------
Liabilities:
Payables:
Distributions payable to shareholders .................... 2,106,153 136,718 93,337
Capital shares repurchased ............................... 1,517,298 99,038 --
Management fees .......................................... 534,483 8,010 293,595
Distribution fees......................................... 175,733 13,633 --
Shareholder servicing costs............................... 14,798 867 40,110
Accrued expenses and other liabilities ..................... 86,050 10,343 19,200
-------------- ------------ ------------
Total liabilities ................................... 4,434,515 268,609 446,242
-------------- ------------ ------------
Net assets, at value ......................................... $1,369,074,798 $ 98,536,591 $692,157,003
============== ============ ============
Net assets consist of:
Undistributed net investment income ........................ $ 1,046,262 $ 117,534 $ --
Unrealized depreciation on investments ..................... (23,557,547) ( 6,648,867) --
Accumulated net realized loss .............................. (9,732,999) (508,323) --
Capital shares ............................................. 1,401,319,082 105,576,247 692,157,003
-------------- ------------ ------------
Net assets, at value ......................................... $1,369,074,798 $ 98,536,591 $692,157,003
============== ============ ============
Shares outstanding ........................................... 121,257,235 10,007,232 692,157,003
============== ============ ============
Net asset value per share .................................... $11.29 $9.85 $1.00
============== ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
34
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - -------------------------------------------------------------------------------
FINANCIAL STATEMENTS (CONT.)
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
FRANKLIN FRANKLIN CALIFORNIA FRANKLIN
CALIFORNIA INTERMEDIATE-TERM CALIFORNIA
INSURED TAX-FREE TAX-FREE TAX-EXEMPT
INCOME FUND INCOME FUND MONEY FUND
---------------- ------------------- -----------
<S> <C> <C> <C>
Investment income:
Interest (Note 1) ................................................ $ 45,811,826 $ 2,748,389 $11,787,485
------------ ----------- -----------
Expenses:
Management fees (Note 5) ......................................... 3,310,086 45,504 1,793,391
Distribution fees (Note 5) ....................................... 492,348 27,549 --
Shareholder servicing costs (Note 5) ............................. 87,042 6,876 238,929
Reports to shareholders .......................................... 91,691 16,358 154,472
Custodian fees ................................................... 72,818 4,793 33,630
Registration and filing fees ..................................... 56,230 8,678 11,527
Trustees' fees and expenses ...................................... 39,150 148 16,637
Professional fees ................................................ 29,485 3,799 10,918
Insurance ........................................................ 3,532 -- --
Other ............................................................ 37,798 7,781 12,062
------------ ----------- -----------
Total expenses ........................................... 4,220,180 121,486 2,271,566
------------ ----------- -----------
Net investment income .................................. 41,591,646 2,626,903 9,515,919
------------ ----------- -----------
Realized and unrealized gain (loss) on investments:
Net realized gain (loss) ......................................... 4,581,755 (176,527) --
Net unrealized depreciation....................................... (60,507,602) (3,394,828) --
------------ ----------- -----------
Net realized and unrealized loss on investments .......... (55,925,847) (3,571,355) --
------------ ----------- -----------
Net increase (decrease) in net assets resulting from operations.... $(14,334,201) $ (944,452) $ 9,515,919
============ =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
35
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (CONT.)
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1994 (UNAUDITED)
AND THE YEAR ENDED JUNE 30, 1994
<TABLE>
<CAPTION>
FRANKLIN CALIFORNIA INSURED FRANKLIN CALIFORNIA INTERMEDIATE- FRANKLIN CALIFORNIA
TAX-FREE INCOME FUND TERM TAX-FREE INCOME FUND TAX-EXEMPT MONEY FUND
------------------------------- --------------------------------- ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED 12/31/94 ENDED 06/30/94 ENDED 12/31/94 ENDED 06/30/94 ENDED 12/31/94 ENDED 06/30/94
-------------- -------------- -------------- --------------- -------------- --------------
<C> <C> <C> <C> <C> <C>
Increase (decrease)
in net assets:
Operations:
Net investment
income ............... $ 41,591,646 $ 81,945,583 $ 2,626,903 $ 3,974,168 $ 9,515,919 $ 13,258,958
Net realized gain
(loss) from security
transactions ......... 4,581,755 (5,270,661) (176,527) (331,796) -- --
Net unrealized
depreciation on
investments........... (60,507,602) (66,587,573) (3,394,828) (3,691,378) -- --
-------------- -------------- ----------- ----------- ------------ ------------
Net increase
(decrease) in
net assets
resulting from
operations ....... (14,334,201) 10,087,349 (944,452) (49,006) 9,515,919 13,258,958
Distributions to
shareholders from
undistributed net
investment income....... (41,255,522) (81,772,341) (2,549,127) (3,928,197) (9,515,919) (13,258,958)
Increase (decrease)
in net assets from
capital share
transactions
(Note 3) ............... (26,156,644) 158,883,262 8,014,788 55,161,269 (61,964,424) 101,257,180
-------------- -------------- ----------- ----------- ------------ ------------
Net increase
(decrease) in
net assets ....... (81,746,367) 87,198,270 4,521,209 51,184,066 (61,964,424) 101,257,180
Net assets:
Beginning of period......... 1,450,821,165 1,363,622,895 94,015,382 42,831,316 754,121,427 652,864,247
-------------- -------------- ----------- ----------- ------------ ------------
End of period............... $1,369,074,798 $1,450,821,165 $98,536,591 $94,015,382 $692,157,003 $754,121,427
============== ============== =========== =========== ============ ============
Undistributed net invest-
ment income included
in net assets:
Beginning of period....... $ 710,138 $ 536,896 $ 39,758 $ -- $ -- $ --
============== ============== =========== =========== ============ ============
End of period............. $ 1,046,262 $ 710,138 $ 117,534 $ 39,758 $ -- $ --
============== ============== =========== =========== ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
36
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Franklin California Tax-Free Trust (the "Trust") is an open-end management
investment company (mutual fund) registered under the Investment Company Act of
1940 as amended. The Trust currently consists of three separate Funds: Franklin
California Insured Tax-Free Income Fund (the "Insured Fund"), Franklin
California Intermediate-Term Tax-Free Income Fund (the "Intermediate Fund") and
Franklin California Tax-Exempt Money Fund (the "Money Fund"). Each of the Funds
issues a separate series of the Trust's shares and maintains a totally separate
investment portfolio. The Trust's Intermediate Fund is non-diversified, although
the other Funds are diversified.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.
a. SECURITY VALUATIONS: Tax-free bonds generally trade in the over-the-counter
market rather than on a national securities exchange. Often there are no
transactions in a particular security on any given day. In the absence of a
recorded sale or reported bid and ask 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 Trust may also 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 Trustees.
Short-term securities and similar investments with remaining maturities of 60
days or less are valued at amortized cost, which approximates value.
Portfolio securities in the Money Fund are valued at amortized cost, which
approximates value. The Money Fund must maintain a dollar weighted average
maturity of 90 days or less and only purchase instruments having remaining
maturities of 397 days or less. If the Fund's portfolio has a remaining weighted
average maturity of greater than 90 days, the portfolio will be stated at value
based on recorded closing sales on a national securities exchange or, in the
absence of a recorded sale, within the range of the most recent quoted bid and
ask prices. The Trustees have established procedures designed to stabilize, to
the extent reasonably possible, the Fund's price per share as computed for the
purpose of sales and redemptions at $1.00.
b. MUNICIPAL BONDS OR NOTES WITH "PUTS": The Trust has purchased municipal bonds
or notes with the right to resell the bonds or notes to the seller at an agreed
upon price or yield on a specified date or within a specified period (which will
be prior to the maturity date of the bonds or notes). Such a right to resell is
commonly known as a "put". In determining the weighted average maturity of the
Fund's portfolio, municipal bonds and notes as to which the Fund holds a put
will be deemed to mature on the last day on which the put may be exercisable.
c. VARIABLE RATE DEMAND NOTES: The Trust has invested in certain variable
interest rate demand notes with maturities greater than 397 days but which are
redeemable at specified intervals upon demand. The maturity of these instruments
for the purpose of calculating the portfolio's weighted average maturity is
considered to be the lesser of the period until the interest rate is adjusted or
until the principal can be recovered by demand.
d. INCOME TAXES: The Trust intends to continue to qualify for the tax treatment
applicable to regulated investment companies under the Internal Revenue Code and
to make the requisite distributions to its shareholders which will be sufficient
to relieve it from income and excise taxes. Therefore, no income tax provision
is required. Each Fund is treated as a separate entity in the determination of
compliance with the Internal Revenue Code.
e. SECURITY TRANSACTIONS: Security transactions are accounted for on the date
the securities are purchased or sold (trade date). Realized gains and losses on
security transactions are determined on the basis of specific identification for
both financial statement and income tax purposes.
f. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS: For the Insured and the
Intermediate Funds, distributions to shareholders are recorded on the
ex-dividend date. Interest income and estimated expenses are accrued daily. Bond
discount and premium, if any, are amortized as required by the Internal Revenue
Code. The Funds normally declare
37
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT.)
1. SIGNIFICANT ACCOUNTING POLICIES (CONT.)
f. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS (CONT.)
dividends from their net investment income daily and distribute monthly. Daily
allocations of net investment income will commence on the date of receipt of an
investor's funds. Dividends are normally declared each day the New York Stock
Exchange is open for business equal to an amount per day set from time to time
by the Board of Trustees, and are payable to shareholders of record at the
beginning of business on the ex-date. Once each month, dividends are reinvested
in additional shares of the Funds or paid in cash as requested by the
shareholders.
For the Money Fund, net investment income includes income, calculated on an
accrual basis, amortization of original issue and market discount or premium, if
any, and estimated expenses which are accrued daily. The total available for
dividends is computed daily and includes net investment income, plus or minus
any gains or losses on securities transactions and changes in unrealized
portfolio appreciation or depreciation, if any.
g. INSURANCE: Each long-term municipal security in the Insured Fund is insured
as to the scheduled payments of interest and principal by either a mutual fund
Portfolio Insurance Policy, a Secondary Market Insurance Policy, a New Issue
Insurance Policy or has collateral guaranteed by an agency of the U.S.
government. The providers of secondary market and new issue insurance are rated
"AAA" by Standard & Poor's.
Premiums for a mutual fund Portfolio Insurance Policy or a Secondary Market
Insurance Policy are paid from the Insured Fund's assets. Premiums for a mutual
fund Portfolio Insurance Policy [effective only so long as the Insured Fund is
in existence, Financial Guaranty (the insurer) remains in business and the
municipal security insured under the policy continues to be held by the Insured
Fund] will reduce the current income on the portfolio by the amount thereof.
Premiums paid by the Insured Fund for a Secondary Market Insurance Policy
(effective so long as the security so insured is outstanding and the insurer
remains in business) are added to the cost basis of the municipal security
insured and are not considered an expense of the Insured Fund. Premiums for a
New Issue Insurance Policy (effective so long as the security so insured is
outstanding and the insurer remains in business) are paid in advance by the
insured security issuer or by another third party prior to acquisition of the
security by the Insured Fund and are not considered an expense of the Insured
Fund.
h. EXPENSE ALLOCATION: Common expenses incurred by the Trust are allocated among
the Funds based on the ratio of net assets of each Fund to their combined net
assets. In all other respects, expenses are charged to each Fund as incurred on
a specific identification basis.
2. CAPITAL LOSS CARRYOVERS
At June 30, 1994, for tax purposes, the Insured and the Intermediate Funds had
capital loss carryovers as follows:
<TABLE>
<CAPTION>
FRANKLIN CALIFORNIA FRANKLIN CALIFORNIA
INSURED TAX-FREE INTERMEDIATE-TERM
INCOME FUND TAX-FREE INCOME FUND
------------------- --------------------
<S> <C> <C>
1995 ........ $ 1,257,463 $ --
1996 ........ 3,058,598 --
1997 ........ 3,123,675 --
1998 ........ 302,438 --
1999 ........ 319 --
2001 ........ 1,301,600 --
2002 ........ 5,270,661 331,796
----------- --------
$14,314,754 $331,796
=========== ========
</TABLE>
For tax purposes, the aggregate cost of securities and unrealized depreciation
of the Trust are the same as for financial statement purposes at December 31,
1994.
38
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT.)
3. TRUST SHARES
At December 31, 1994, there was an unlimited number of no par value shares of
beneficial interest authorized. Transactions in the Trust shares were as
follows:
<TABLE>
<CAPTION>
FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND
-----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1994 JUNE 30, 1994
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold ......................................... 4,739,565 $ 54,983,064 23,548,766 $290,660,914
Shares issued in reinvestment of distributions ...... 1,462,149 16,862,792 2,454,027 30,148,474
Shares redeemed ..................................... (8,512,843) (97,379,471) (12,217,008) (149,116,324)
Changes from exercise of the exchange privilege:
Shares sold ....................................... 6,054,734 69,129,727 10,634,887 130,590,567
Shares redeemed ................................... (6,059,509) (69,752,756) (11,740,527) (143,400,369)
---------- ------------ ----------- ------------
Net increase (decrease) ............................. (2,315,904) $(26,156,644) 12,680,145 $158,883,262
========== ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND
----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1994 JUNE 30, 1994
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold ......................................... 703,953 $ 7,152,756 4,120,511 $43,780,014
Shares issued in reinvestment of distributions ...... 151,146 1,519,783 208,209 2,193,337
Shares redeemed ..................................... (1,189,140) (11,843,753) (935,219) (9,787,277)
Changes from exercise of the exchange privilege:
Shares sold ....................................... 1,983,751 19,784,837 3,485,516 36,969,564
Shares redeemed ................................... (860,081) (8,598,835) (1,721,610) (17,994,369)
---------- ----------- ---------- -----------
Net increase ........................................ 789,629 $ 8,014,788 5,157,407 $55,161,269
========== =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
FRANKLIN CALIFORNIA
TAX-EXEMPT MONEY FUND
----------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1994 JUNE 30, 1994
----------------- --------------
AMOUNT AMOUNT
----------------- --------------
<S> <C> <C>
Transactions in capital stock at $1.00 per share were as follows:
Shares sold ................................................................... $ 296,216,352 $ 664,176,200
Shares issued in reinvestment of distributions ................................ 9,474,809 13,220,211
Shares redeemed ............................................................... (387,120,197) (805,971,559)
Changes from exercise of the exchange privilege:
Shares sold ................................................................. 288,228,488 667,038,282
Shares redeemed ............................................................. (268,763,876) (437,205,954)
------------- -------------
Net increase (decrease) ....................................................... $ (61,964,424) $ 101,257,180
============= =============
</TABLE>
39
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT.)
4. PURCHASES AND SALES OF SECURITIES
Aggregate purchases and sales of securities (excluding purchases and sales of
short-term securities) for the six months ended December 31, 1994, were as
follows:
<TABLE>
<CAPTION>
FRANKLIN CALIFORNIA INSURED FRANKLIN CALIFORNIA INTERMEDIATE- FRANKLIN CALIFORNIA
TAX-FREE INCOME FUND TERM TAX-FREE INCOME FUND TAX-EXEMPT MONEY FUND
--------------------------- --------------------------------- ---------------------
<S> <C> <C>
Purchases ......................... $ 78,533,275 $7,712,754 --
============ ========== =======
Sales ............................. $130,380,041 $4,683,564 --
============ ========== =======
</TABLE>
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Franklin Advisers, Inc., under the terms of a management agreement, provides
investment advice, administrative services, office space and facilities to each
Fund, and receives fees computed monthly based on the net assets of the Insured
Fund and the Intermediate Fund on the last day of the month at an annualized
rate of 5/8 of 1% of the net assets, and receives fees computed daily based on
the net assets of the Money Fund at 1/584 of 1% (approximately 5/8 of 1% per
year) of the net assets. The annual rate of fees for all Funds is reduced on net
assets over $100 million, as follows: 1/2 of 1% per year of net assets in excess
of $100 million up to and including $250 million; and 45/100 of 1% per year of
net assets in excess of $250 million. The terms of the management agreement
provide that aggregate annual expenses of the Funds be limited to the extent
necessary to comply with the limitations set forth in the laws, regulations and
administrative interpretations of the states in which the Funds' shares are
registered. The Funds' expenses did not exceed these limitations; however, for
the six months ended December 31, 1994, Franklin Advisers, Inc. agreed in
advance to waive $259,100 of the management fees for the Intermediate Fund.
In its capacity as underwriter for the shares of the Insured Fund and the
Intermediate Fund, Franklin/Templeton Distributors, Inc. received commissions on
sales of the Funds' shares for the six months ended December 31, 1994 totaling
$1,703,876 and $110,328, respectively, of which $1,587,838 and $96,537,
respectively, were subsequently paid to other dealers. Commissions are deducted
from the gross proceeds received from the sale of the Insured Fund's and
Intermediate Fund's shares, and as such are not expenses of the Funds.
Under the terms of a shareholder services agreement with Franklin/Templeton
Investor Services, Inc., the Trust pays costs on a per shareholder account
basis. Shareholder servicing costs incurred by the Insured Fund, the
Intermediate Fund and the Money Fund for the six months ended December 31, 1994
were $87,042, $6,876 and $238,929, respectively, of which $79,389, $6,656 and
$238,632, respectively, were paid to Franklin/Templeton Investor Services, Inc.
Under the terms of a Distribution Plan pursuant to Rule 12b-1 of the Investment
Company Act of 1940, the Intermediate Fund reimburses Franklin/Templeton
Distributors, Inc. in an amount up to .10% per annum of the fund's average daily
net assets for costs incurred in the promotion, offering and marketing of the
Fund's shares. Fees incurred by the Intermediate Fund under the agreement
aggregated $27,549 for six months ended December 31, 1994. The Money Fund did
not incur any such distribution expenses during the six months ended December
31, 1994.
Effective May 1, 1994, the Insured Fund implemented a plan of distribution under
Rule 12b-1 of the Investment Company Act of 1940, pursuant to which the Insured
Fund will reimburse Franklin/Templeton Distributors, Inc. in an amount up to a
maximum of 0.10% per annum of the Fund's average daily net assets for costs
incurred in the promotion, offering and marketing of the Fund's shares. Fees
incurred by the Fund under the agreement aggregated $492,348 for the six months
ended December 31, 1994.
On December 8, 1994, Franklin Resources, Inc. purchased $6.6 million in face
value of unsecured Orange County Tax Revenue Anticipation Note, 4.5%, 07/19/1995
from the California Tax-Exempt Money Fund at amortized cost of $6,623,125 plus
accrued interest of $127,050. The Fund did not incur a loss as a result of this
transaction.
40
<PAGE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
- - --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT.)
Certain officers and trustees of the Trust are also officers and/or directors of
Franklin/Templeton Distributors, Inc., Franklin Advisers, Inc., and
Franklin/Templeton Investor Services, Inc., all wholly-owned subsidiaries of
Franklin Resources, Inc.
6. CREDIT RISK
There are certain credit risks due to the manner in which the Funds are
invested, which may subject the Funds more significantly to economic changes
occurring in California.
The Portfolio Insurance Policy covering securities held by the Insured Fund is
issued by an issuer rated "AAA" by Standard & Poor's. Only one issuer provides
coverage to the Fund. As a result the Fund may face the risk of a loss if a
change in the solvency of the issuer occurs.
7. FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout the
periods by fund are as follows:
<TABLE>
<CAPTION>
PER SHARE OPERATING PERFORMANCE
- - -----------------------------------------------------------------------------------------------------------
NET ASSET NET REALIZED DISTRIBUTIONS NET ASSET
YEAR VALUE NET & UNREALIZED TOTAL FROM FROM NET VALUE
ENDED BEGINNING INVESTMENT GAIN (LOSS) INVESTMENT INVESTMENT AT END TOTAL
JUNE 30 OF YEAR INCOME ON SECURITIES OPERATIONS INCOME OF YEAR RETURN+
- - -------------------------------------------------------------------------------------------------------------------------
FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND:
<S> <C> <C> <C> <C> <C> <C> <C>
1990 $ 11.27 $ .74 $ (.104) $ .636 $ (.736) $ 11.17 5.59%
1991 11.17 .74 .094 .834 (.744) 11.26 7.45
1992 11.26 .70 .457 1.157 (.747) 11.67 10.32
1993 11.67 .69 .636 1.326 (.696) 12.30 11.47
1994 12.30 .68 (.562) .118 (.678) 11.74 .67
1994+++ 11.74 .34 (.454) (.114) (.336) 11.29 (.99)
<CAPTION>
FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND:
1993** 10.00 .29 .550 .840 (.290) 10.55 10.95*
1994 10.55 .54 (.360) .180 (.530) 10.20 1.65
1994+++ 10.20 .27 (.356) (.086) (.264) 9.85 (.86)
<CAPTION>
FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND:
1990 1.00 .055 -- .055 (.055) 1.00 5.61
1991 1.00 .045 -- .045 (.045) 1.00 4.58
1992 1.00 .031 -- .031 (.031) 1.00 3.17
1993 1.00 .021 -- .021 (.021) 1.00 2.08
1994 1.00 .018 -- .018 (.018) 1.00 1.83
1994+++ 1.00 .013 -- .013 (.013) 1.00 1.30
</TABLE>
<TABLE>
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
- - -------------------------------------------------------------------
RATIO OF RATIO OF NET
NET ASSETS EXPENSES INVESTMENT
YEAR AT END TO AVERAGE INCOME PORTFOLIO
ENDED OF YEAR NET ASSETS TO AVERAGE TURNOVER
JUNE 30 (IN 000'S) (SEE NOTE 5)++ NET ASSETS RATE
- - -------------------------------------------------------------------
FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND:
<S> <C> <C> <C> <C>
1990 $ 306,531 .59% 6.63% 10.41%
1991 471,997 .57 6.48 4.20
1992 967,745 .55 6.16 3.50
1993 1,363,623 .53 5.82 8.28
1994 1,450,821 .54 5.53 6.98
1994+++ 1,369,075 .59* 5.85* 5.63
<CAPTION>
FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND:
1993** 42,831 .09* 4.73* .08
1994 94,015 .25 5.11 14.95
1994+++ 98,537 .25* 5.42* 4.98
<CAPTION>
FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND:
1990 1,039,389 .55 5.36 --
1991 953,738 .57 4.47 --
1992 759,204 .60 3.14 --
1993 652,864 .62 2.07 --
1994 754,121 .61 1.82 --
1994+++ 692,157 .62* 2.59* --
</TABLE>
*Annualized
**For the period September 21, 1992 (effective date of registration) to June 30,
1993.
+Total return measures the change in value of an investment over the periods
indicated. It is not annualized. It does not include the Insured Fund and the
Intermediate Fund maximum initial sales charges, and assumes reinvestment of
dividends and capital gains, if any, at net asset value for the Intermediate
Fund and the Money Fund, and assumes reinvestment of dividends at the offering
price and capital gains, if any, at net asset value for the Insured Fund.
Effective May 1, 1994, with the implementation of the Rule 12b-1 distribution
plan, as discussed in Note 5, the Insured Fund's existing sales charge on
reinvested dividends has been eliminated.
++During the periods indicated, Franklin Advisers, Inc., the investment manager,
agreed in advance to waive a portion of management fees and made payments of
other expenses of the Intermediate Fund. Had such action not been taken, the
ratio of operating expenses to average net assets would have been .95%
(annualized), .80% and .79% (annualized), respectively.
+++For the six months ended December 31, 1994.
41
<PAGE>
APPENDIX
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM EDGAR FILING
(PURSUANT TO ITEM 304 (a) of REGULATION S-T)
GRAPHIC MATERIAL (1)
This bar chart shows the comparison between the
fund's seven-day effective yield of 4.37% and the
taxable equivalent effective rate of 7.96%.
GRAPHIC MATERIAL (2)
This chart shows in pie chart format the fund's
securities breakdown by sector as a percentage of
the fund's total net assets.
<TABLE>
<CAPTION>
Portfolio Breakdown on 12/31/94
<S> <C>
Mello-Roos Bonds 1.2%
Marks-Roos bonds 1.2%
Prerefunded 25.8%
General Obligations 1.9%
Housing 2.4%
Education 4.3%
Hospitals 6.3%
Other Revenue 11.8%
Utilities 12.1%
Tax Allocation Bonds 14.7%
Certificates of Participation 16.8%
Other 1.5%
</TABLE>
GRAPHIC MATERIAL (3)
This bar chart shows the comparison between the
fund's distribution rate of 5.70% and the taxable
equivalent rate of 10.60%.
GRAPHIC MATERIAL (4)
This chart shows in pie chart format the fund's
securities breakdown by sector as a percentage of the fund's total net assets.
<TABLE>
<CAPTION>
Portfolio Breakdown on 12/31/94
<S> <C>
Healthcare 1.1%
Tax Revenue Bonds 1.9%
Hospitals 3.4%
Certificates of Participation 27.9%
Special Assessment Bonds 3.6%
Marks-Roos Bonds 4.1%
Housing 6.5%
Utilities 7.2%
Education 8.7%
Other Revenue 16.0%
Tax Allocation Bonds 18.9%
Other 0.7%
</TABLE>
GRAPHIC MATERIAL (5)
This bar chart shows the comparison between the fund's
distribution rate of 5.24% and the taxable equivalent rate
of 9.74%.
