For yield, price, last transaction,
and current balance, 24 hours,
7 days a week, call:
1-800-638-2587 toll free
625-7676 Baltimore area
For assistance with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
625-6500 Baltimore area
T. Rowe Price
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus of the T. Rowe Price California
Tax-Free Funds.
CAC
Annual Report
California Tax-Free
Funds
February 28, 1995
Fellow Shareholders
Vigorous economic growth and Federal Reserve tightening dominated the fixed
income markets in 1994. Real growth of 4% last year exceeded the historical
trend of approximately 2.5%. The target for the fed funds rate climbed with
the economy's strong pace, rising from 3% at the beginning of last year to 6%
on February 1, 1995. The Federal Reserve pursued its monetary policy to slow
economic growth to a level that will contain inflation. Future Fed action will
reflect its goal of preventing excessive inflation without spurring
significantly higher unemployment.
Rising yields characterized the tax-exempt market during most of 1994.
The yield on one-year AAA General Obligation (GO) bonds peaked in December at
4.9%, up from 3% at the end of February 1994. However, as the market
strengthened over the last several months, the one-year yield retreated to
4.4% by fiscal year-end. The five-year AAA GO bond yield ended this quarter at
5%, 70 basis points higher than a year ago but 50 basis points lower than at
the end of November (100 basis points are one percent). On the long end, the
yield on AAA 30-year GO bonds was almost 6%, up from 5.6% a year earlier but
down from its November peak of 6.8%.
Yields declined after the Fed's sixth tightening of the year in
November. Anticipation of a slowing economy, good news on inflation, and
limited supply of tax-exempt bonds all contributed to the recent drop in
yields. Issuance fell to a four-year low last year and so far is even lower in
1995.
California's long-awaited economic recovery finally got under way in
1994. We expect it to continue at a modest pace this year, ushering in an
improvement in state finances, although the state is still struggling under
the weight of a $1.7 billion deficit. We are uncertain about the outlook for
the fiscal 1996 budget, now being considered, because of the governor's plan
to cut both taxes and spending and erase the accumulated deficit by June 30,
1996. Recent flooding throughout the state could also pose budget problems.
The state's general obligation bonds were downgraded in mid-1994, following
several years of economic weakness. However, we do not not expect further
rating downgrades in 1995.
CHART 1: California Yield Indexes
Source: T. Rowe Price
The Orange County bankruptcy filing late last year was a major event in
the municipal market. Previously, the county had enjoyed a Aa1 rating by
Moody's for many of its securities. Virtually overnight its credit rating
plunged to speculative grade because of the inappropriate investment
activities of the county's treasurer. As a result of our research earlier in
the year, we were uneasy with Orange County's investment practices. We did not
include its securities in the California Tax-Free Money Fund, and the
California Tax-Free Bond Fund's exposure was minimal.
California Tax-Free Money Fund
Last year's rise in interest rates was bad news for bond investors but good
news for money market investors as current yields rose substantially during
the past 12 months. Your fund's seven-day compound yield stood at 3.41% at the
end of the fiscal year, compared with 1.96% a year ago.
During the past 12 months, the municipal short-term yield curve has
steepened sharply. For example, the difference between the yield on an
overnight investment and a one-year security averaged 1.21 percentage points
over the past year, compared with an average difference of 0.48 of a
percentage point during the preceding 12-month period. The long end of the
money market curve followed the rate rise orchestrated by the Fed, while very
short-term yields stayed low, responding to light supply and strong investor
demand.
Your fund ended its fiscal year with a weighted average maturity of 34
days, in line with its peer group average of 33 days, but significantly
shorter than the 49-day average at the beginning of the year. Because of the
uncertainty surrounding short-term securities in the state during the last
quarter, California funds in general maintained a shorter weighted average
maturity than nationally diversified funds. While we expect the short-term
market to remain sensitive to further rate hikes, the light supply of new
issues, low dealer inventories, and solid demand induce us to keep maturities
in line with our peer group average.
Issuance of short-term securities fell to $34.1 billion from $45.4
billion during the fiscal year, the lowest level in five years. Borrowers
flocked to the market in 1992 and 1993 to lock in historically low borrowing
costs. Even though California and its various municipalities are the largest
issuers of notes, our stringent credit policy narrows our universe of suitable
investments. This problem grew worse during the past quarter because of the
far-reaching consequences of the Orange County debacle.
Performance Comparison
Periods Ended 2/28/95
3 Months 12 Months
___________________________
California Tax-Free
Money Fund 0.79% 2.55%
IBC/Donoghue Money Fund
Report Average* 0.81 2.58
* State Specific Stockbroker & General Purpose California
Our comprehensive research is the key to achieving the fund's primary
goal of assuring stability of principal. Your fund's performance marginally
lagged its peer group for both the last three months and the fiscal year ended
February 28, in large part reflecting our high credit standards.
California Tax-Free Bond Fund
New bond issuance in the state fell sharply over the past year, in line with
the rest of the country, as higher rates discouraged borrowers and statewide
elections put financing plans on hold. California sold $1.2 billion worth of
issues during the first two months of 1995 compared with $4.4 billion during
January and February 1994. Sparse supply, combined with recovery from the
Orange County calamity, helped California outperform the general municipal
market for the year to date.
CHART 2: California Bond Issues
Source: Securities Data Co.
Our strategy during the first three quarters of the fiscal year was to
keep duration relatively short and maintain both liquidity and a high average
credit quality. We held duration, which measures sensitivity to changes in
interest rates, near or below 7.5 years, and kept a reasonably high cash
reserve of about 5%. We also underweighted health care and solid waste
sectors, where competition has weakened credit quality. As mentioned, we
limited exposure to Orange County when our independent research made us
uncomfortable with its investment practices.
During the final quarter of the fiscal year, we changed course modestly
and lengthened duration to take advantage of November's high interest rates as
well as weak demand for California bonds because of the situation in Orange
County. Duration lengthened to 7.63 years at fiscal year-end, a more neutral
and less defensive posture.
Our strategy served the fund well, allowing it to significantly
outperform its peer group over the difficult 12 months ended February 28.
Fourth quarter performance was very strong, although it lagged the
competition.
Performance Comparison
Periods Ended 2/28/95
3 Months 12 Months
____________________________
California Tax-Free
Bond Fund 8.03% 1.60%
Lipper California Municipal
Debt Fund Average 8.70 0.19
Outlook
The U.S. economy should continue to grow, although at a lower rate than in
1994. To date, the Fed's actions appear to be starting to slow the pace of
growth, keeping inflation in check. However, in the near term, we do expect
some acceleration in inflation based on tight labor markets and relatively
high capacity utilization. This may result in somewhat higher interest rates
over the next few months, but most likely lower than the levels reached in the
fall. Moreover, light new issuance combined with continued strong demand for
tax-exempt bonds could result in better overall returns in the municipal bond
market in 1995.
It is worth noting that 1994 was tumultuous for fixed income investors
because of rising interest rates, widespread misuse of derivatives, and a
large municipal bankruptcy. We want to assure you that we will continue to
make investments that are appropriate for each fund's risk profile. In those
funds that can purchase derivatives, our exposure has been modest and has not
introduced undue risk for shareholders. In addition, our avoidance of the
Orange County crisis reinforces the value of thorough credit research.
We appreciate the continued confidence all our shareholders have placed
in us.
Respectfully submitted,
Patrice L. Berchtenbreiter
Chairman of the
Investment Advisory Committee
California Tax-Free Money Fund
Mary J. Miller
Chairman of the
Investment Advisory Committee
California Tax-Free Bond Fund
March 17, 1995
Statistical Highlights
California Tax-Free Money Fund
Key Statistics
Dividend Yield*
__________________________
7-Day Compound on 2/28/94 1.96%
7-Day Compound on 2/28/95 3.41
Periods Ended
Dividend Per Share 2/28/95
__________________________ ______________
3 Months $0.008
12 Months** 0.025
Weighted Average Quality! 2.1
Weighted Average Maturity 34 days
* Dividends earned and reinvested for the periods
indicated are annualized and divided by the average
daily net asset values per share for the same period.
** Taxability of dividends. 99.4% and 95.5% of dividends
are exempt from federal and California state income
taxes, respectively.
! On a T. Rowe Price scale of 1 to 10, with Grade 1
representing highest quality.
California Tax-Free Bond Fund
Key Statistics
Periods Ended
Dividend Yield* 2/28/95
_________________________ _____________
3 Months 5.85%
12 Months 5.82
Dividend Per Share
_________________________
3 Months $0.14
12 Months** 0.55
Change in Price Per Share
_________________________
3 Months (From $9.39 to $10.00) $0.61
12 Months (From $10.43 to $10.00) -0.43
Weighted Average Quality! 2.4
Weighted Average Maturity 18.2 years
Weighted Average Effective Duration 7.6 years
* Dividends earned and reinvested for the periods
indicated are annualized and divided by the
average daily net asset values per share for the same period.
** Taxability of dividends. 100% and 99.1% of dividends
are exempt from federal and California state income taxes, respectively.
! On a T. Rowe Price scale of 1 to 10, with Grade 1
representing highest quality.
California Tax-Free Money Fund
Sector Diversification
Percent of Net Assets
_____________________
February 28, 1995
_________________
Hospital Revenue 19%
Water and Sewer Revenue 18
Lease Revenue 14
Pooled Loan Revenue 11
Nuclear Revenue 10
General Obligation - Local 8
Industrial and Pollution Control Revenue 7
Dedicated Tax Revenue 5
Air and Sea Transportation Revenue 5
Pre-refunded Bonds 2
General Obligation - State 1
California Tax-Free Bond Fund
Sector Diversification
Percent of Net Assets
_____________________
February 28, 1995
_________________
Water and Sewer Revenue 14%
Dedicated Tax Revenue 13
Housing Finance Revenue 10
Nuclear Revenue 10
Air and Sea Transportation Revenue 9
Lease Revenue 7
Pre-refunded Bonds 7
Hospital Revenue 7
Electric Revenue 6
General Obligation - Local 6
Educational Revenue 4
Miscellaneous Revenue 3
Escrowed to Maturity 2
Industrial and Pollution Control Revenue 1
Ground Transportation Revenue 1
CHART 3: Fiscal-Year Performance Comparison
Fiscal-Year Performance
Periods ended February 28, 1995
Since Inception*
1 Year 5 Years* (9/15/86)
______ ______ ________________
1.60% 7.77% 6.41%
* Average Annual Compound Total Return
Income return and principal value represent past performance and will vary.
Shares may be worth more or less at redemption than at original purchase.
Investment Record
Per-Share Data
The following tables show the investment records of one share purchased at the
original offering prices of $1.00 for the Money Fund and $10.00 for the Bond
Fund. Over the time periods covered in each table, interest rates have been
volatile. The results shown should not be considered representative of the
returns which would be realized from investments made in the funds today.
T. Rowe Price California Tax-Free Money Fund
With
With Dividends
Capital Divi- and
Fiscal Net Income Gain dends Capital
Year Asset Divi- Distri- Rein- Gains Total
Ended Value dends butions vested Reinvested Return
_______________ _______ ________ _______ ___________ _______
2/28/87* $1.00 $0.02 $1.02 $1.02 1.52%
1988 1.00 0.04 1.06 1.06 4.17
1989 1.00 0.05 1.11 1.11 4.76
1990 1.00 0.05 1.17 1.17 5.40
1991 1.00 0.05 1.22 1.22 4.73
1992 1.00 0.03 1.27 1.27 3.55
1993 1.00 0.02 1.30 1.30 2.31
1994 1.00 0.02 1.32 1.32 1.92
1995 1.00 0.03 1.35 1.35 2.55
________________________________________________________________________
Total $0.31 $0.00
* From inception 9/15/86 to 2/28/87.
T. Rowe Price California Tax-Free Bond Fund
With
With Dividends
Capital Divi- and
Fiscal Net Income Gain dends Capital
Year Asset Divi- Distri- Rein- Gains Total
Ended Value dends butions**vested Reinvested Return
_______________ _______ ________ _______ ___________ _______
2/28/87*$10.48 $0.29 $10.78 $10.78 7.79%
1988 9.44 0.57 10.33 10.33 -4.17
1989 9.31 0.57 10.84 10.84 4.93
1990 9.39 0.59 11.63 11.63 7.35
1991 9.51 0.58 12.55 12.55 7.84
1992 9.85 0.59 13.81 13.81 10.05
1993 10.65 0.57 15.80 15.80 14.41
1994 10.43 0.56 $0.23 16.30 16.65 5.37
1995 10.00 0.55 0.02 16.52 16.91 1.60
________________________________________________________________________
Total $4.87 $0.25
* From inception 9/15/86 to 2/28/87.
** Includes short-term capital gain of $0.06 on 12/10/93.
Statement of Net Assets
T. Rowe Price California Tax-Free Income Trust / February 28, 1995
(amounts in thousands, except capital stock information)
Money Fund
Face Amount Value
___________ _________
CALIFORNIA - 99.8%
Alameda County, GO, TRAN, 4.75%,
8/11/95 . . . . . . . . . . . . . . . . . $ 1,500 $ 1,496
California, GO, (AMBAC Insured),
5.00%, 8/1/95 . . . . . . . . . . . . . . 500 501
California Dept. of Water Resources, TECP,
3.60 - 3.75%, 3/8 - 3/15/95 . . . . . . . 3,034 3,034
Central Valley Project, 7.50%, 12/1/22
(Pre-refunded 12/1/95!) . . . . . . . . . 15 16
California EFA, Stanford Univ.,
8.50%, 9/1/15 (Pre-refunded
9/1/95!). . . . . . . . . . . . . . . . . 60 62
California HFA, Adventist Health,
(MBIA Insured), 10.00%, 3/1/14
(Pre-refunded 3/1/95!). . . . . . . . . . 30 31
Pooled Loan Program, (MBIA Insured), VRDN
(Currently 4.00%) . . . . . . . . . . . . 800 800
St. Joseph's Health Systems, 9.875%, 7/1/14
(Pre-refunded 7/1/95!). . . . . . . . . . 15 15
California HFFA, Catholic Healthcare West,
(MBIA Insured), VRDN
(Currently 3.85%) . . . . . . . . . . . . 1,000 1,000
Daughters of Charity Health Systems,
VRDN (Currently 4.05%). . . . . . . . . . 2,000 2,000
Kaiser Permanente, VRDN
(Currently 3.90%) . . . . . . . . . . . . 5,600 5,600
LHS Corporation, 9.125%, 4/1/15
(Pre-refunded 4/1/95!). . . . . . . . . . 100 102
Pooled Loan Program, VRDN
(Currently 4.05%) . . . . . . . . . . . . 1,900 1,900
(FGIC Insured), VRDN
(Currently 4.00%) . . . . . . . . . . . . 3,500 3,500
Santa Barbara Cottage Hosp., VRDN
(Currently 3.90%) . . . . . . . . . . . . 2,100 2,100
St. Joseph's Health System, VRDN
(Currently 3.70%) . . . . . . . . . . . . 200 200
California Pollution Control Fin. Auth.,
Pacific Gas & Electric,
TECP, 3.75 - 4.25%,
3/6 - 5/12/95 * . . . . . . . . . . . . . 3,800 3,800
Shell Oil, VRDN (Currently 3.70%). . . . . . 100 100
VRDN (Currently 3.95%) *. . . . . . . . . 5,600 5,600
Contra Costa County, GO, TRAN,
4.25%, 7/7/95 . . . . . . . . . . . . . . 1,000 995
East Bay Municipal Utilities Dist.,
Waste Water Systems, TECP,
3.80 - 4.30%, 3/23 - 5/17/95. . . . . . . 2,300 2,300
Water Systems, TECP, 3.90 - 4.15%,
3/30 - 5/18/95. . . . . . . . . . . . . . 1,500 1,500
Fairfield-Suisun, Sewer Dist.,
(MBIA Insured), 7.20%, 5/1/96
(Pre-refunded 5/1/95!). . . . . . . . . . 50 51
7.80%, 5/1/16 (Pre-refunded 5/1/95!). . . 50 51
Kern County Union High School Dist.,
COP, VRDN (Currently 4.20%) . . . . . . . 2,400 2,400
Long Beach, Harbor Dept., TECP, 4.20%, 4/13 -
5/10/95 * . . . . . . . . . . . . . . . . 3,500 3,501
Los Angeles County, GO, TRAN,
4.50%, 6/30/95. . . . . . . . . . . . . . 2,160 2,161
Local Ed. Agencies, TRAN,
4.50%, 7/6/95 . . . . . . . . . . . . . . 2,000 1,996
Los Angeles County Metropolitan Transportation
Auth., Union Station Gateway, (FSA
Insured), VRDN (Currently 4.00%). . . . . 3,800 3,800
Los Angeles Dept. Water & Power, TECP,
3.75 - 4.30%, 3/7 - 5/24/95 . . . . . . . 3,500 3,500
Los Angeles Unified School Dist., GO, TRAN,
4.50%, 7/10/95. . . . . . . . . . . . . . 1,000 997
Los Angeles Waste Water Systems, TECP,
3.65 - 4.15%, 3/9 - 4/7/95. . . . . . . . 3,000 3,000
M-S-R Public Power Agency, San Juan Power,
9.25%, 7/1/21
(Pre-refunded 7/1/95!). . . . . . . . . . 450 466
Metropolitan Water Dist. of Southern
California, TECP, 3.65 -
4.15%, 3/17 - 5/18/95 . . . . . . . . . . 3,800 3,800
Newport Beach, Hoag Memorial Hosp. Presbyterian,
VRDN (Currently 3.75%). . . . . . . . . . 3,600 3,600
CALIFORNIA (cont'd)
Face Amount Value
___________ _________
Northern California Power Agency,
Public Power Geothermal Project
Number 3, 9.75%, 7/1/08
(Pre-refunded 7/1/95!). . . . . . . . . . $ 25 $ 26
Oakland, COP, VRDN (Currently 4.40%) . . . . . 3,300 3,300
Redlands Redev. Agency, Tax Allocation,
(AMBAC Insured), 10.60%, 7/1/00
(Pre-refunded 7/1/95!). . . . . . . . . . 45 47
Riverside County, COP,
VRDN (Currently 3.90%). . . . . . . . . . 3,400 3,400
Sacramento Utility Dist., Electric, 8.625%,
7/1/10 (Pre-refunded 7/1/95!) . . . . . . 45 47
San Diego County, Regional Transportation
Commission, 5.60%, 4/1/95
(Escrowed to Maturity). . . . . . . . . . 50 50
San Francisco Bay Area, Rapid Transit Dist.
Sales Tax, 9.00%, 7/1/11
(Pre-refunded 7/1/95!). . . . . . . . . . 500 523
San Luis Coastal Unified School Dist., GO,
VRDN (Currently 4.20%). . . . . . . . . . 600 600
San Mateo County, COP,
VRDN (Currently 3.50%). . . . . . . . . . 1,285 1,285
Santa Clara - El Camino Hosp. Dist.,
Valley Medical Center, VRDN
(Currently 3.85%) . . . . . . . . . . . . 500 500
Santa Clara County Traffic Auth., 6.60%, 4/1/95
(Escrowed to Maturity). . . . . . . . . . 35 35
Santa Clara Valley Water Distr., 6.70%, 6/1/95
(Escrowed to Maturity). . . . . . . . . . 100 101
Southern California Public Power Auth., 9.00%,
7/1/11 (Pre-refunded 7/1/95!) . . . . . . 10 10
Palo Verde, 9.375%, 7/1/12 (Pre-refunded
7/1/95!). . . . . . . . . . . . . . . . . 115 120
(AMBAC Insured), 9.25%, 7/1/11
(Pre-refunded 7/1/95!). . . . . . . . . 25 26
Whittier Health Fac., Presbyterian
Intercommunity, (MBIA Insured), 9.50%,
6/1/10 (Pre-refunded 6/1/95!) . . . . . . 70 72
Total Investments in Securities -99.8%
of Net Assets (Cost $76,141). . . . . . . 76,117
Other Assets Less Liabilities. . . . . . . . . 172
________
Net Assets Consist of Value
_________
Accumulated net investment income -
net of distributions . . . . . . . . . . . . $ 4
Accumulated net realized gain/loss -
net of distributions . . . . . . . . . . . . (143)
Net unrealized gain (loss) . . . . . . . . . . (24)
Paid-in-capital applicable to 76,456,394
no par value shares of beneficial interest
outstanding; unlimited number of
shares authorized. . . . . . . . . . . . . . 76,452
_________
NET ASSETS . . . . . . . . . . . . . . . . . . $ 76,289
________
________
NET ASSET VALUE PER SHARE. . . . . . . . . . . $1.00
_____
_____
* - Interest subject to alternative minimum tax
! - Used in determining portfolio maturity
AMBAC - AMBAC Indemnity Corp.
COP - Certificates of Participation
EFA - Educational Facility Authority
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance Corp.
GO - General Obligation
HFA - Health Facility Authority
HFFA - Health Facility Financing Authority
MBIA - Municipal Bond Investors Assurance Corp.
PCR - Pollution Control Revenue
TECP - Tax-Exempt Commercial Paper
TRAN - Tax Revenue Anticipation Note
VRDN - Variable Rate Demand Note
T. Rowe Price California Tax-Free Income Trust / Statement of Net Assets
Bond Fund
Face Amount Value
___________ _________
CALIFORNIA - 98.4%
Alameda County, Water Systems, COP,
(FGIC Insured), 6.00%, 6/1/20 . . . . . . $ 1,500 $ 1,473
California Dept. of Water Resources,
Central Valley, 7.00%, 12/1/11. . . . . . 1,730 1,919
7.00%, 12/1/12. . . . . . . . . . . . . . 1,000 1,114
California EFA, Pomona College, 6.00%, 2/15/17 2,850 2,807
St. Mary's College of California, 7.50%,
10/1/20 (Pre-refunded 10/1/00!) . . . . . 2,000 2,266
Stanford Univ., 6.75%, 1/1/13. . . . . . . . 1,000 1,035
California HFA, Memorial Health Services,
VRDN (Currently 3.90%) . . . . . . . . . . . 1,400 1,400
California HFFA, Kaiser Permanente, VRDN
(Currently 3.90%). . . . . . . . . . . . 300 300
St. Francis Memorial Hosp., VRDN
(Currently 3.75%) . . . . . . . . . . . . 275 275
St. Joseph's Health System, VRDN
(Currently 3.70%) . . . . . . . . . . . . 600 600
Sutter Health, VRDN (Currently 3.70%). . . . 400 400
California Housing Fin. Agency,
8.10%, 8/1/07 . . . . . . . . . . . . . . 300 322
7.20%, 8/1/09 . . . . . . . . . . . . . . 340 358
7.625%, 8/1/09. . . . . . . . . . . . . . 2,380 2,529
7.25%, 8/1/10 . . . . . . . . . . . . . . 285 299
6.45%, 2/1/11 . . . . . . . . . . . . . . 1,000 1,013
6.70%, 8/1/15 . . . . . . . . . . . . . . 1,100 1,115
6.85%, 8/1/17 . . . . . . . . . . . . . . 3,115 3,197
7.25%, 8/1/17 . . . . . . . . . . . . . . 1,000 1,067
8.20%, 8/1/17 . . . . . . . . . . . . . . 1,425 1,505
7.875%, 8/1/19. . . . . . . . . . . . . . 510 538
8.00%, 8/1/19 . . . . . . . . . . . . . . 250 264
6.70%, 8/1/25 * . . . . . . . . . . . . . 1,000 1,017
California Pollution Control Fin. Auth.,
Exxon, VRDN (Currently 3.80%) . . . . . . 100 100
Pacific Gas & Electric, 8.20%,
12/1/18 . . . . . . . . . . . . . . . . . 2,000 2,136
(MBIA Insured), 5.85%, 12/1/23 * . . . . . . 2,000 1,871
Shell Oil, VRDN (Currently 3.70%). . . . . . 400 400
VRDN (Currently 3.95%) *. . . . . . . . . 1,000 1,000
Southern California Edison, (AMBAC Insured),
6.85%, 12/1/08. . . . . . . . . . . . . . 2,000 2,115
6.85%, 12/1/08. . . . . . . . . . . . . . 1,000 1,057
California Public Works Board, Dept. of
Corrections, 6.875%, 11/1/14. . . . . . . 1,000 1,038
Univ. of California, 5.50%, 6/1/14 . . . . . 3,800 3,432
Univ. of California, Berkley Life Sciences,
7.60%, 3/1/09
(Pre-refunded 3/1/98!). . . . . . . . . . 1,250 1,369
California Statewide Communities Dev. Auth.,
Sutter Health, COP,
(MBIA Insured), 5.50%, 8/15/23. . . . . . 2,000 1,816
Castaic Lake Water Agency, Water System
Improvement, COP,
(MBIA Insured), 7.00%, 8/1/12 . . . . . . 1,000 1,129
7.00%, 8/1/13 . . . . . . . . . . . . . . 1,700 1,923
Castaic Union School Dist., GO, (FGIC Insured),
Zero Coupon, 5/1/18 . . . . . . . . . . . 6,675 1,589
Central Coast Water Auth., State Water Project
Regional Fac., (AMBAC Insured),
6.60%, 10/1/22. . . . . . . . . . . . . . 1,000 1,039
Contra Costa Water Dist., 7.625%, 10/1/08
(Pre-refunded 10/1/98!) . . . . . . . . . 500 554
(AMBAC Insured), 6.25%, 10/1/12 . . . . . 1,000 1,046
Corona Redev. Agency, Tax Allocation, (FGIC
Insured), 6.25%, 9/1/13 . . . . . . . . . 1,000 1,022
Cupertino, COP, (AMBAC
Insured), 5.75%, 7/1/16 . . . . . . . . . 1,500 1,450
Face Amount Value
___________ _________
CALIFORNIA (cont'd)
East Bay Municipal Utility Dist., Water
System, 6.00%, 6/1/12 . . . . . . . . . . $ 2,000 $ 1,996
East Bay Regional Park Dist., GO,
5.75%, 9/1/16 . . . . . . . . . . . . . . 1,000 957
Fresno Joint Powers Fin.
Auth, 5.75%, 9/2/98 . . . . . . . . . . . 1,000 998
Inglewood Redev. Agency, Century Redev.,
6.125%, 7/1/23. . . . . . . . . . . . . . 1,700 1,541
Kern County Union High School Dist., GO,
(MBIA Insured), 7.00%, 8/1/10 . . . . . . 1,000 1,127
Long Beach Harbor, 7.25%, 5/15/19 *. . . . . . 2,500 2,606
Los Angeles, Wastewater
System, 7.10%, 6/1/18 . . . . . . . . . . 1,000 1,050
Los Angeles County, Civic Center Heating &
Refrigerating Plant, COP,
8.00%, 6/1/10 (Pre-refunded
6/1/98!). . . . . . . . . . . . . . . . . 500 555
Marina del Rey, COP, 6.25%, 7/1/03 . . . . . 2,500 2,520
6.50%, 7/1/08 . . . . . . . . . . . . . . 1,000 988
Los Angeles County Metropolitan
Transportation Auth., Sales Tax,
7.40%, 7/1/15 . . . . . . . . . . . . . . 515 547
(MBIA Insured), 6.00%, 7/1/23 . . . . . . 3,000 2,967
Union Station Gateway, (FSA Insured),
VRDN (Currently 4.00%). . . . . . . . . . 1,200 1,200
Los Angeles Harbor Dept., 7.60%, 10/1/18
(Escrowed to Maturity). . . . . . . . . . 3,000 3,359
6.625%, 8/1/19 *. . . . . . . . . . . . . 2,500 2,536
Metropolitan Water Dist. of Southern
California, 6.75%, 6/1/22 . . . . . . . . 610 623
Mt. Diablo Hosp. Dist., (AMBAC Insured),
8.00%, 12/1/11 (Pre-refunded
12/1/00!) . . . . . . . . . . . . . . . . 1,250 1,451
Newport Beach, Hoag Memorial Hosp.
Presbyterian, VRDN
(Currently 3.75%) . . . . . . . . . . . . 400 400
Northern California Transmission Agency,
California-Oregon Transmission,
(MBIA Insured), 6.00%, 5/1/24 . . . . . . 1,405 1,388
Oakland, Special Refunding (Pension Financing),
GO, (FGIC Insured), 7.60%, 8/1/21 . . . . 3,500 3,814
Orange County, COP, 7.625%, 6/1/19
(Pre-refunded 6/1/99!). . . . . . . . . . 1,750 1,956
Orange County Local Transportation Auth.,
Sales Tax, (AMBAC Insured),
6.00%, 2/15/09. . . . . . . . . . . . . . 750 756
Port of Oakland, (BIGI Insured),
7.25%, 11/1/16. . . . . . . . . . . . . . 1,600 1,684
Riverside, Electric Revenue,
6.00%, 10/1/15. . . . . . . . . . . . . . 2,000 1,970
Riverside County, Desert Justice Fac., COP,
(MBIA Insured), 6.00%, 12/1/12. . . . . . 1,000 1,006
Sacramento County, Telecommunications
Systems, COP, VRDN
(Currently 4.05%) . . . . . . . . . . . . 400 400
Sacramento Municipal Utility Dist., Electric
Revenue, (MBIA Insured),
6.25%, 8/15/10. . . . . . . . . . . . . . 2,300 2,414
San Bernardino County, West Valley Detention
Center, 7.70%, 11/1/18
(Pre-refunded 11/1/98!) . . . . . . . . . 500 556
San Francisco City & County, Airport Revenue,
(AMBAC Insured), 6.50%, 5/1/18 *. . . . . 3,000 3,059
Public Utility Commission, 8.00%,
11/1/11 . . . . . . . . . . . . . . . . . 1,000 1,091
6.00%, 11/1/15. . . . . . . . . . . . . . 4,255 4,185
San Joaquin Hills Transportation Corridor
Agency, Toll Road,
Zero Coupon, 1/1/00 . . . . . . . . . . . 1,500 1,085
San Jose, Airport Revenue, (MBIA Insured),
5.75%, 3/1/16 . . . . . . . . . . . . . . 2,050 1,968
T. Rowe Price California Tax-Free Income Trust / Statement of Net Assets
Bond Fund (cont'd)
Face Amount Value
___________ _________
CALIFORNIA (cont'd)
San Mateo County Joint Powers Fin. Auth.,
Health Care Center,
(FSA Insured), 6.125%, 7/15/14. . . . . . $ 1,000 $ 1,002
Santa Clara, Electric Revenue, (MBIA Insured),
5.75%, 7/1/24 . . . . . . . . . . . . . . 2,500 2,387
Santa Clara County Fin. Auth., (AMBAC Insured),
7.75%, 11/15/11 . . . . . . . . . . . . . 1,000 1,210
Santa Clara Redev. Agency, Bayshore North
Project, (AMBAC Insured),
7.00%, 7/1/10 . . . . . . . . . . . . . . 3,000 3,375
Santa Fe Springs Redev. Agency, (MBIA Insured),
6.00%, 9/1/14 . . . . . . . . . . . . . . 2,000 2,003
Santa Margarita/Dana Point Auth., (MBIA Insured),
7.25%, 8/1/10 . . . . . . . . . . . . . . 1,000 1,151
South Orange County PFA, (MBIA Insured),
7.00%, 9/1/07 . . . . . . . . . . . . . . 2,000 2,234
Southern California Public Power Auth.,
6.75%, 7/1/10 . . . . . . . . . . . . . . 2,100 2,217
Floating Rate, 7/1/12
(Currently 5.858%) . . . . . . . . . . . 1,000 984
6.75%, 7/1/12 . . . . . . . . . . . . . . 1,700 1,793
Torrance, Little Company of Mary Hosp.,
6.875%, 7/1/15. . . . . . . . . . . . . . 1,360 1,379
Tri City Hosp. Dist., Oceanside Hosp., (MBIA
Insured), 7.50%, 2/1/17 . . . . . . . . . 2,000 2,205
Univ. of California, Parking System., 7.75%,
11/1/16 (Pre-refunded 11/1/96!) . . . . . 250 267
__________________________________________________________________________
PUERTO RICO - 1.5%
Puerto Rico Electric Power Auth.,
7.00%, 7/1/21 . . . . . . . . . . . . . . 1,000 1,062
Puerto Rico Ind., Med., Higher Ed. &
Environmental Pollution Control Fac.
Fin. Auth., Catholic Univ. of Puerto Rico,
5.60%, 12/1/07. . . . . . . . . . . . . . 1,000 949
Total Investments in Securities - 99.9% of
Net Assets (Cost $127,106). . . . . . . . 131,870
Other Assets Less Liabilities. . . . . . . . . 83
________
Net Assets Consist of: Value
________
Accumulated net investment income -
net of distributions. . . . . . . . . . . $ 4
Accumulated net realized gain/loss -
net of distributions. . . . . . . . . . . (3,586)
Net unrealized gain (loss) . . . . . . . . . . 4,764
Paid-in-capital applicable to 13,199,478 no
par value shares of beneficial interest
outstanding; unlimited number of
shares authorized . . . . . . . . . . . . 130,771
________
NET ASSETS . . . . . . . . . . . . . . . . . . $ 131,953
________
________
NET ASSET VALUE PER SHARE. . . . . . . . . . . $10.00
______
______
* - Interest subject to alternative minimum tax
! - Used in determining portfolio maturity
AMBAC - AMBAC Indemnity Corp.
COP - Certificates of Participation
EFA - Educational Facility Authority
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance Corp.
GO - General Obligation
HFA - Health Facility Authority
HFFA - Health Facility Financing Authority
MBIA - Municipal Bond Investors Assurance Corp.
PCR - Pollution Control Revenue
TECP - Tax-Exempt Commercial Paper
TRAN - Tax Revenue Anticipation Note
VRDN - Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
Statement of Operations
T. Rowe Price California Tax-Free Income Trust / Year Ended February 28,
1995
(in thousands)
Money Fund Bond Fund
___________ _________
INVESTMENT INCOME
Interest income. . . . . . . . . . . . . . . $ 2,397 $ 8,311
________ ________
Expenses
Investment management . . . . . . . . . . 169 492
Shareholder servicing . . . . . . . . . . 111 136
Custody and accounting. . . . . . . . . . 105 121
Legal and audit . . . . . . . . . . . . . 15 15
Prospectus and shareholder reports. . . . 10 16
Trustees. . . . . . . . . . . . . . . . . 6 7
Registration. . . . . . . . . . . . . . . 6 5
Proxy and annual meeting. . . . . . . . . 4 6
Miscellaneous . . . . . . . . . . . . . . 5 6
________ ________
Total expenses. . . . . . . . . . . . . . 431 804
________ ________
Net investment income. . . . . . . . . . . . 1,966 7,507
________ ________
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Securities. . . . . . . . . . . . . . . . (97) (3,501)
Futures . . . . . . . . . . . . . . . . . - (8)
________ ________
Net realized gain (loss). . . . . . . . . (97) (3,509)
Change in net unrealized gain or
loss on securities. . . . . . . . . . . . (20) (3,009)
________ ________
Net realized and
unrealized gain (loss). . . . . . . . . . (117) (6,518)
________ ________
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS. . . . . . . . . . $ 1,849 $ 989
________ ________
________ ________
The accompanying notes are an integral part of these financial statements.
Statement of Changes in Net Assets
T. Rowe Price California Tax-Free Income Trust
(in thousands)
Money Fund Bond Fund
Year Ended Year Ended
February 28, February 28,
1995 1994 1995 1994
______ ______ ______ ______
INCREASE (DECREASE) IN
NET ASSETS FROM
Operations
Net investment
income . . . . . . . . . $ 1,966 $ 1,293 $ 7,507 $ 7,890
Net realized
gain (loss). . . . . . . (97) 8 (3,509) 4,294
Change in net unrealized
gain or loss . . . . . . (20) (86) (3,009) (4,250)
________ ________ ________ ________
Increase (decrease)
in net assets from
operations . . . . . . . 1,849 1,215 989 7,934
________ ________ ________ ________
Distributions to shareholders
Net investment
income . . . . . . . . . (1,966) (1,293) (7,507) (7,890)
Net realized gain . . . . . - - (284) (3,301)
________ ________ ________ ________
Decrease in net assets from
distributions. . . . . . (1,966) (1,293) (7,791) (11,191)
________ ________ ________ ________
Capital share transactions*
Shares sold . . . . . . . . 94,040 78,676 25,265 47,590
Distributions
reinvested . . . . . . . 1,810 1,185 5,456 8,331
Shares redeemed . . . . . . (93,460) (72,384) (43,902) (44,701)
________ ________ ________ ________
Increase (decrease) in net
assets from capital share
transactions . . . . . . 2,390 7,477 (13,181) 11,220
________ ________ ________ ________
Increase (decrease)
in net assets. . . . . . 2,273 7,399 (19,983) 7,963
________ ________ ________ ________
NET ASSETS
Beginning of period. . . . . . 74,016 66,617 151,936 143,973
________ ________ ________ ________
End of period. . . . . . . . . $76,289 $74,016 $131,953 $151,936
________ ________ ________ ________
________ ________ ________ ________
__________________________________________________________________________
*Share information
Shares sold . . . . . . . . 94,040 78,676 2,578 4,446
Distributions reinvested. . 1,810 1,185 556 779
Shares redeemed . . . . . . (93,460) (72,384) (4,498) (4,179)
________ ________ ________ ________
Increase (decrease)
in shares
outstanding. . . . . . . 2,390 7,477 (1,364) 1,046
________ ________ ________ ________
________ ________ ________ ________
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
T. Rowe Price California Tax-Free Income Trust / February 28, 1995
Note 1 - Significant Accounting Policies
T. Rowe Price California Tax-Free Income Trust (the Trust) is registered
under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The California Tax-Free Money Fund (the
Money Fund) and the California Tax-Free Bond Fund (the Bond Fund) are the
two portfolios established under the Trust.
A) Valuation - Debt securities are generally traded in the
over-the-counter market. Investments in securities with remaining
maturities of one year or more are stated at fair value as furnished by
dealers who make markets in such securities or by an independent pricing
service, which considers yield or price of bonds of comparable quality,
coupon, maturity, and type, as well as prices quoted by dealers who make
markets in such securities. Except with respect to certain securities
held by the Money Fund, securities with remaining maturities less than one
year are stated at fair value which is determined by using a matrix system
that establishes a value for each security based on money market yields.
Securities held by the Money Fund with remaining maturities of 60 days or
less are valued at amortized cost.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair
value as determined in good faith by or under the supervision of the
officers of the fund, as authorized by the Board of Trustees.
B) Premiums and Discounts - Premiums and discounts on municipal securities
are accounted for in accordance with federal income tax regulations, which
require the amortization of all premiums and discounts except market
discounts. Market discounts are included in the gain or loss recorded on
disposition of the security for financial reporting purposes and ordinary
income for tax purposes.
C) Other - Income and expenses are recorded on the accrual basis.
Investment transactions are accounted for on the trade date. Realized
gains and losses are reported on an identified cost basis. Distributions
to shareholders are recorded by the fund on the ex-dividend date. Income
and capital gain distributions are determined in accordance with federal
income tax regulations and may differ from those determined in accordance
with generally accepted accounting principles.
Note 2 - Investment Transactions
Purchases and sales of portfolio securities for the Bond Fund, other than
short-term securities, aggregated $99,214,000 and $109,616,000,
respectively, for the period ended February 28, 1995.
Note 3 - Federal Income Taxes
No provision for federal income taxes is required since each fund intends
to continue to qualify as a regulated investment company and distribute
all of its income. The Money Fund has unused realized capital loss
carryforwards for federal income tax purposes of $45,000; $19,000 of which
expire in 1997, and $26,000 in 1998. The Bond Fund has unused realized
capital loss carryforwards for federal income tax purposes of $3,204,000
which expire in 2003. Capital loss carryforwards utilized in period ended
February 28, 1995 amounted to $1,000 for the Money Fund. Each fund
intends to retain gains realized in future periods that may be offset by
available capital loss carryforwards.
In order for the Bond Fund's capital accounts and distributions to
shareholders to reflect the tax character of certain transactions, $73,000
of undistributed net realized gains were reclassified as a decrease to
paid-in-capital during the period ended February 28, 1995. The results of
operations and net assets were not affected by the reclassifications.
Notes to Financial Statements (cont'd)
At February 28, 1995, the aggregate cost of investments for the
Money and Bond Funds for federal income tax and financial reporting
purposes was $76,141,000 and $127,106,000, respectively. Net unrealized
gain (loss) on investments was as follows:
Money Bond
Fund Fund
___________ ___________
Appreciated Investments $ 2,000 $ 4,950,000
Depreciated Investments (26,000) (186,000)
__________ __________
Net Unrealized Gain (Loss) $ (24,000) $ 4,764,000
___________ ___________
___________ ___________
Note 4 - Related Party Transactions
The investment management agreement between each fund and T. Rowe Price
Associates, Inc. (the Manager) provides for an annual investment
management fee, of which $10,000 for the Money Fund and $34,000 for the
Bond Fund was payable at February 28, 1995. The fee is computed daily and
paid monthly, and consists of an Individual Fund Fee equal to 0.10% of
average daily net assets and a Group Fee. The Group Fee is based on the
combined assets of certain mutual funds sponsored by the Manager or
Rowe-Price Fleming International, Inc. (the Group). The Group Fee rate
ranges from 0.48% for the first $1 billion of assets to 0.31% for assets
in excess of $34 billion. At February 28, 1995, and for the period then
ended, the effective annual Group Fee rate was 0.34%. Each fund pays a
pro rata share of the Group Fee based on the ratio of its net assets to
those of the Group.
Under the terms of the investment management agreement, the Manager
is required to bear any expenses through February 28, 1995, for the Money
and Bond Funds, which would cause each fund's ratio of expenses to average
net assets to exceed 0.55% and 0.60%, respectively. Pursuant to this
agreement, $179,000 and $102,000 of management fees were not accrued by
the Money Fund and the Bond Fund, respectively, for the period ended
February 28, 1995, and, pursuant to a previous agreement, $225,000 and
$154,000, respectively, remain unaccrued from prior periods. Subject to
shareholder approval, each fund may reimburse the Manager for these
expenses, provided that average net assets have grown or expenses have
declined sufficiently to allow reimbursement without causing each fund's
ratio of expenses to average net assets to exceed 0.55% and 0.60%,
respectively. Pursuant to a previous agreement, $485,000 and $364,000 of
unaccrued fees and other expenses borne by the Manager in the Money and
Bond Funds, respectively, were permanently waived at February 28, 1995.
In addition, each fund has entered into agreements with the Manager
and a wholly-owned subsidiary of the Manager, pursuant to which each fund
receives certain other services. The Manager computes the daily share
price and maintains the financial records of each fund. T. Rowe Price
Services, Inc. (TRPS) is each fund's transfer and dividend disbursing
agent and provides shareholder and administrative services to each fund.
The Money and Bond Funds incurred expenses pursuant to these related party
agreements totaling approximately $156,000 and $177,000, respectively, for
the period ended February 28, 1995, of which $14,000 and $17,000,
respectively, were payable at period end.
Financial Highlights
T. Rowe Price California Tax-Free Income Trust
Money Fund
For a share outstanding throughout each period
______________________________________________
Year Ended
Feb. 28, Feb. 28, Feb. 28, Feb. 29, Feb. 28,
1995 1994 1993 1992 1991
______________________________________________
NET ASSET VALUE,
BEGINNING OF
PERIOD. . . . . . . $1.000 $1.000 $1.000 $1.000 $1.000
________ ________ ________ ________ ________
Investment Activities
Net investment
income. . . . . . . 0.025* 0.019* 0.023* 0.035* 0.046*
Distributions
Net investment
income. . . . . . . (0.025) (0.019) (0.023) (0.035) (0.046)
________ ________ ________ ________ ________
NET ASSET VALUE,
END OF
PERIOD. . . . . . . $1.000 $1.000 $1.000 $1.000 $1.000
________ ________ ________ ________ ________
________ ________ ________ ________ ________
RATIOS/SUPPLEMENTAL DATA
Total Return . . . . . 2.55% 1.92% 2.31% 3.55% 4.73%
Ratio of Expenses to
Average Net
Assets. . . . . . . 0.55%* 0.55%* 0.55%* 0.55%* 0.71%*
Ratio of Net Investment
Income to Average
Net Assets. . . . . 2.51% 1.90% 2.29% 3.50% 4.64%
Net Assets, End of
Period (in
thousands). . . . . $76,289 $74,016 $66,617 $70,302 $82,408
* Excludes expenses in excess of a 0.55% voluntary expense limitation in
effect November 7, 1990 through February 28, 1995.
Financial Highlights
T. Rowe Price California Tax-Free Income Trust
Bond Fund
For a share outstanding throughout each period
______________________________________________
Year Ended
Feb. 28, Feb. 28, Feb. 28, Feb. 29, Feb. 28,
1995 1994 1993 1992 1991
______________________________________________
NET ASSET VALUE,
BEGINNING OF
PERIOD . . . . . $10.43 $10.65 $9.85 $9.51 $9.39
________ ________ ________ ________ ________
Investment Activities
Net investment
income . . . . . 0.55* 0.56* 0.57* 0.59* 0.58*
Net realized and
unrealized gain
(loss) . . . . . (0.41) 0.01 0.80 0.34 0.12
________ ________ ________ ________ ________
Total from
Investment
Activities. . . . . 0.14 0.57 1.37 0.93 0.70
________ ________ ________ ________ ________
Distributions
Net investment
income . . . . . (0.55) (0.56) (0.57) (0.59) (0.58)
Net realized
gain . . . . . . (0.02) (0.23) - - -
________ ________ ________ ________ ________
Total
Distri-
butions. . . . . (0.57) (0.79) (0.57) (0.59) (0.58)
________ ________ ________ ________ ________
NET ASSET VALUE,
END OF
PERIOD. . . . . . . $10.00 $10.43 $10.65 $9.85 $9.51
________ ________ ________ ________ ________
________ ________ ________ ________ ________
RATIOS/SUPPLEMENTAL DATA
Total Return . . . . . 1.60% 5.37% 14.41% 10.05% 7.84%
Ratio of Expenses
to Average Net
Assets . . . . . 0.60%* 0.60%* 0.60%* 0.60%* 0.73%*
Ratio of Net Investment
Income to Average Net
Assets . . . . . 5.60% 5.19% 5.69% 6.07% 6.29%
Portfolio Turnover
Rate. . . . . . . . 78.0% 73.4% 57.5% 80.3% 192.7%
Net Assets, End of
Period (in
thousands) . . . $131,953 $151,936 $143,973 $108,494 $84,375
* Excludes expenses in excess of a 0.60% voluntary expense limitation in
effect November 7, 1990 through February 28, 1995 and a 0.80%
voluntary expense limitation in effect November 1, 1989 through
November 6, 1990.
Report of Independent Accountants
To the Shareholders and Board of Trustees
of T. Rowe Price California Tax-Free Funds
We have audited the accompanying statement of net assets of T. Rowe
Price California Tax-Free Money Fund and T. Rowe Price California Tax-Free
Bond Fund (the two portfolios comprising the T. Rowe Price California
Tax-Free Income Trust) as of February 28, 1995, and the related statement
of operations for the year then ended, the statement of changes in net
assets for each of the two years in the period then ended, and the
financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility
of the Funds' management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of investments owned as of February 28, 1995, by
correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of T. Rowe Price California Tax-Free Money Fund and T. Rowe Price
California Tax-Free Bond Fund as of February 28, 1995, the results of
their operations, the changes in their net assets, and financial
highlights for each of the respective periods stated in the first
paragraph, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
March 17, 1995
CHART 1: muncipal bond and note yield chart showing California Bond Index
and California Money Index from Feb. 28, 1994 to Feb. 28, 1995
CHART 2: bar graph showing California Bond Issues from Jan. 1994 through
Feb. 1995
CHART 3: Fiscal-Year Performance Comparison line graphs for California
Tax-Free Funds annual report (Feb. 28, 1995) Shows $10,000 investments in
California Tax-Free Bond Fund and Lehman Municipal Bond Index from 1986 to
1995.
