<PAGE>
[GRAPHIC]
Annual Report August 31, 2000
Oppenheimer
Main Street(R) California
Municipal Fund
[GRAPHIC]OppenheimerFunds(R)
The Right Way to Invest
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REPORT HIGHLIGHTS
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CONTENTS
1 President's Letter
3 An Interview
with Your Fund's
Managers
7 Fund Performance
11 Financial
Statements
28 Independent
Auditors' Report
29 Federal
Income Tax
Information
30 Officers and Directors
Despite lower municipal bond prices over the past fiscal year, the municipal
bond market began to rally during the first quarter of 2000.
During the first seven months of 2000, California's tax-exempt bond market has
benefited from greater demand and a reduced supply of new issues.
We believe that municipal bonds currently offer compelling value compared to
30-year U.S. Treasury bonds.
Average Annual
Total Returns*
For the 1-Year Period
Ended 8/31/00
Class A
Without With
Sales Chg. Sales Chg.
------------------------------
6.12% 1.08%
Class B
Without With
Sales Chg. Sales Chg.
------------------------------
5.08% 0.08%
*See Notes on page 9 for further details.
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PRESIDENT'S LETTER
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Dear Shareholder,
[PHOTO]
James C. Swain
Chairman
Oppenheimer
Main Street California
Municipal Fund
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Main Street California
Municipal Fund
Over the past several decades, our investment teams have learned the importance
of avoiding complacency when it comes to navigating the financial markets--
especially when times are good. Right now, times appear particularly good. The
U.S. economy is in its tenth year of expansion. In the bond market, U.S.
Treasury issues have been performing favorably over the past year. In addition,
despite volatility in the second quarter, the stock market has been providing
attractive returns from a wide spectrum of industry sectors, capitalization
ranges and investment styles.
We have arrived at this juncture after months of monitoring the rapid pace
of global economic growth and its implications for inflation, as well as the
Federal Reserve Board's evolving monetary policy. At this point, economic
indicators suggest a dampening of short-term inflationary pressures. While
recent increases in oil prices are certainly taking their toll, we don't believe
this signals a return to 1970's-style inflation. Accordingly, if the Fed
continues in its diligence, the economy could maintain its healthy rate of
growth.
In the bond market, the achievement of a federal budget surplus has
prompted the Treasury to buy back many of its long-term securities. The
resulting supply shortage boosted these securities' returns, causing an
inversion of the yield curve--an unusual situation in which shorter term
Treasuries yield more than their longer term counterparts. Other bond sectors
are offering many opportunities in the form of attractive valuations.
Perhaps most important is that we have begun to see encouraging signs in
the stock market. Formerly high-flying Internet stocks have generally come down
to earth, and investors have
1 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
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PRESIDENT'S LETTER
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begun to refocus on companies with strong business fundamentals and
justifiable valuations. Investors have also returned to long-neglected,
value-oriented companies.
What else do these various trends tell us? They tell us that the
ability to discriminate between long-term potential and short-lived fads
has become more critical than ever. Trying to generate good long-term
performance requires tracking the best companies through intensive
research, combined with hard-earned experience.
At OppenheimerFunds, our seasoned portfolio management teams fight
complacency by remaining constantly aware of the risks that face the
economy and financial markets. Virtually anything could affect the overall
markets--a surge in inflation, a decline in productivity, deteriorating
corporate earnings, or even the new Administration's proposals regarding
tax reform, health-care and Social Security. However, by remaining vigilant
in our quest for fundamentally sound businesses, we believe we can find
good investments that can weather market volatility.
In this environment, we encourage you to consult your financial
advisor and to stay on track with your long-term financial plan. For our
part, we will continue to monitor the opportunities and risks ever present
in the financial markets. Thank you for your confidence in
OppenheimerFunds, The Right Way to Invest.
Sincerely,
/s/ James C. Swain /s/ Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
September 22, 2000
These general market views represent opinions of OppenheimerFunds, Inc. and
are not intended to predict or depict performance of the securities markets
or any particular fund. Specific discussion, as it applies to your Fund, is
contained in the pages that follow. Stocks and bonds have different types
of investment risks; stocks are subject to market volatility and bonds are
subject to credit and interest rate risks.
2 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
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AN INTERVIEW WITH YOUR FUND'S MANAGERS
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Portfolio Management
Team
Jerry Webman
Merrell Hora
How did Oppenheimer Main Street(R) California Municipal Fund perform during the
one-year period that ended August 31, 2000?
A. During the reporting period, the Fund faced a difficult investment
environment. Inflation fears and higher interest rates eroded most tax-exempt
bond prices, especially during the last five months of 1999. The Fund's slightly
aggressive positioning during this time--including a relatively long average
duration and an emphasis on higher yielding securities--hampered performance.
In the first quarter of 2000, and again in June and July, however, we began
to see signs of a potential market recovery. Most significant is that individual
investors' demand for California municipal bonds has surged. At the same time,
the available supply of newly issued municipal bonds has fallen. Nevertheless,
municipal bond price averages ended the one-year reporting period at lower
levels than where they began.
Why have higher interest rates negatively affected municipal bond prices?
Fixed income investors generally dislike rising interest rates, which tend to
erode the prices of their previously issued, lower yielding bonds. At the same
time, however, investors with a long-term perspective may take advantage of a
rising interest rate environment to benefit from higher levels of current
income. Such was the case with many of the Fund's holdings over the past year:
as interest rates rose, so did the Fund's yield. This enabled us to maintain the
Fund's income stream in a declining market.
3 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGERS
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--------------------------------------------------------------
"We believe that municipal bonds, and municipal bond funds,
represent compelling investment values relative to comparable
taxable securities."
--------------------------------------------------------------
Why has the Federal Reserve Board been raising interest rates?
The Federal Reserve Board (the Fed), which sets U.S. monetary policy, has been
raising key short-term interest rates over the past year because of inflation
concerns. The U.S. economy has been growing so strongly that the Fed believes
that it may threaten to reignite forces potentially leading to higher prices and
wages. Most of us have seen ample evidence of this phenomenon recently in the
form of higher gasoline and heating oil prices. With unemployment currently
hovering near record low levels, we have also seen upward pressure on wages as
growing companies compete for a limited number of skilled workers.
In response to these developments, the Fed raised interest rates several
times during the 12-month reporting period. Taking into account the single
interest rate hike implemented before the reporting period began, the Fed has
raised interest rates by 1.75 percentage points since mid-June, 1999. These
actions are intended to slow economic growth by making borrowing more expensive
for businesses and consumers.
Why have market conditions improved recently?
Although the municipal securities market generally trended downward during the
last five months of 1999, the municipal bond market began to rally during the
first quarter of 2000, and again in June and July. There are two primary reasons
for this: investors' interest-rate expectations and a reduced supply of
municipal bonds.
After more than a year of rising interest rates, evidence has begun to
emerge that the Fed's policies may be starting to reduce the growth rate of the
U.S. economy. Key economic statistics measuring trends in consumer spending, new
home construction, employment and other factors have begun to decline to more
sustainable levels. Accordingly, some investors believe that most--though not
necessarily all--interest rate increases may be behind us, and they are buying
bonds to lock
4 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
Average Annual
Total Returns
For the Periods Ended 9/30/00/1/
Class A
1-Year 5-Year 10-Year
--------------------------------
0.65% 4.67% 6.55%
Class B Since
1-Year 5-Year Inception
--------------------------------
-0.28% 4.32% 4.09%
--------------------------------
Standardized Yields/2/
For the 30 Days Ended 8/31/00
--------------------------------
Class A 4.66%
--------------------------------
Class B 3.93
--------------------------------
in prevailing high yields. This has been particularly true of individual
investors who have shifted assets out of the stock market in the wake of
heightened volatility in the equity markets.
In addition, the supply of new California municipal bonds is down sharply
from the levels of a year ago. This is primarily the result of the strong U.S.
and local economies, which have helped create larger-than-expected tax revenues
for many state and local governments. California municipalities have thus had
less need to borrow in the public markets.
Of course, there is no guarantee that these beneficial trends will persist
or that market conditions will continue to improve.
How was the Fund managed in this environment?
We have continued to try to reposition the portfolio more defensively by
reducing our holdings of out-of-favor bonds, such as those financing airport
construction, and by improving the overall credit quality of the portfolio.
However, our ability to accomplish this has been limited by market conditions.
Because demand for California municipal bonds has come primarily from individual
investors, and not from institutional investors, some of our
institutional-oriented, lower rated bonds declined more in price relative to
higher rated bonds that individuals are buying. We have generally retained these
holdings as we wait for institutional investors to re-enter the market and
create greater liquidity--and higher prices--for these issues.
When making new purchases, we focused primarily on general obligation bonds
from California issuers that are either insured or rated triple-A. These are the
types of bonds that tend to appeal most to individual investors, potentially
making them easier to sell when the time comes. With the supply of California
bonds dwindling, we have also found opportunities in the bonds of U.S.
territories, such as Puerto Rico, Guam and the U.S. Virgin Islands, which
provide income that is exempt from
1. See page 9 for further details.
2. Standardized yield is based on net investment income for the 30-day period
ended August 31, 2000. Falling share prices will tend to artificially raise
yields.
5 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGER
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Credit Allocation/3/
[PIE CHART]
. AAA 53.1%
. AA 12.1
. A 9.0
. BBB 16.1
. BB 9.7
federal and state income taxes for California residents. Keep in mind that,
while individual holdings may be insured, an investment in the Fund is not.
What is your outlook for the near future?
We remain generally optimistic. At current levels, we believe that municipal
bonds--and municipal bond funds--represent compelling investment values relative
to comparable taxable securities.
Over the near term, the direction of the U.S. economy remains uncertain. If
the current higher interest rates ultimately slow the economy without triggering
recession, interest rates should begin to decline and bonds may benefit. In our
opinion, maintaining a long-term perspective that spans economic cycles such as
these is an important part of what makes OppenheimerFunds The Right Way to
Invest.
The Fund's Board has proposed to reorganize the Fund into Oppenheimer
California Municipal Fund, subject to shareholder approval. Please refer to the
Prospectus supplement dated 9/7/00 or the proxy statement, which has been
furnished to shareholders of record as of 8/16/00, for more information.
Top Five Industries/4/
--------------------------------------------------------
Special Assessment 19.7%
--------------------------------------------------------
Single Family Housing 15.3
--------------------------------------------------------
Electric Utilities 11.1
--------------------------------------------------------
Highways 10.4
--------------------------------------------------------
General Obligation 7.5
3. Portfolio data are as of August 31, 2000, are dollar-weighted based on
invested assets and are subject to change. The Fund may invest up to 25% of its
assets in below-investment-grade securities which carry greater risk of default.
Securities rated by any rating organization are included in the equivalent
Standard & Poor's rating category. Average credit quality and allocation include
rated securities and those not rated by a national rating organization
(currently 19.6% of total investments) but to which the Manager in its judgment
has assigned ratings as securities comparable to those rated by a rating agency
in the same category.
4. Industry weightings as of August 31, 2000, represent a percentage of market
value and are subject to change.
6 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
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FUND PERFORMANCE
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How has the Fund performed? Below is a discussion, by the Manager, of the Fund's
performance during its fiscal year ended August 31, 2000, followed by a
graphical comparison of the Fund's performance to an appropriate broad-based
market index.
Management's discussion of performance. During the Fund's fiscal year that ended
August 31, 2000, Oppenheimer Main Street California Municipal Fund's performance
was negatively impacted by adverse economic and fixed income market conditions,
including inflation fears and rising interest rates. Because of the relatively
limited demand for institutional-oriented bonds, the portfolio managers
generally held their institutional issues during the reporting period. For new
purchases, the portfolio managers generally turned to insured or triple-A
general obligation bonds from California issuers. The portfolio managers believe
that municipal bonds are currently providing highly competitive after-tax
yields, compared to historical norms. In our opinion, municipal bonds may
represent attractive values if the U.S. economy slows enough to relieve
inflationary pressures without entering recession. The Fund's portfolio
holdings, allocations and investment style are subject to change.
Comparing the Fund's performance to the market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held from the inception of the class until August 31, 2000. In the case of
Class A shares, performance is measured over a 10-year period. In the case of
Class B shares, performance is measured from the inception of the Class on
October 29, 1993. The Fund's performance reflects the deduction of the maximum
initial sales charge on Class A shares and the applicable contingent deferred
sales charge for Class B. The graphs assume that all dividends and capital gains
distributions were reinvested in additional shares.
Because the Fund invests in a variety of Municipal Securities, the Fund's
performance is compared to that of the Lehman Brothers Municipal Bond Index, an
unmanaged index of a broad range of investment-grade municipal bonds that is
widely regarded as a measure of the performance of the general municipal bond
market. Index performance reflects the reinvestment of income but does not
consider the effect of capital gains or transaction costs, and none of the data
on the next page shows the effect of taxes. Also, the Fund's performance
reflects the effect of Fund business and operating expenses. While index
comparisons may be useful to provide a benchmark for the Fund's performance, it
must be noted that the Fund's investments are not limited to the securities in
any one index.
7 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
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FUND PERFORMANCE
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Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
--Oppenheimer Main Street California Municipal Fund (Class A)
--Lehman Brothers Municipal Bond Index
[LINE GRAPH]
California Fund Lehman Brothers Municipal Bond Index
6/30/90 9,525 10,000
9/30/90 9,492 10,006
12/31/90 9,887 10,437
3/31/91 10,096 10,673
6/30/91 10,281 10,901
9/30/91 10,660 11,325
12/31/91 11,008 11,704
3/31/92 11,044 11,740
6/30/92 11,433 12,184
9/30/92 11,698 12,509
12/31/92 11,927 12,736
3/31/93 12,430 13,209
6/30/93 12,847 13,642
9/30/93 13,341 14,103
12/31/93 13,493 14,301
3/31/94 12,743 13,516
6/30/94 12,770 13,664
9/30/94 12,821 13,758
12/31/94 12,462 13,562
3/31/95 13,556 14,520
6/30/95 13,910 14,870
9/30/95 14,247 15,297
12/31/95 14,918 15,929
3/31/96 14,755 15,737
6/30/96 14,845 15,857
8/31/96 (1) 15,011 15,997
11/30/96 15,746 16,705
2/28/97 15,843 16,819
5/31/97 16,027 16,985
8/31/97 16,549 17,476
11/30/97 17,030 17,902
2/28/98 17,510 18,356
5/31/98 17,663 18,579
8/31/98 18,092 18,988
11/30/98 18,400 19,291
2/28/99 18,527 19,485
5/31/99 18,458 19,447
8/31/99 17,835 19,083
11/30/99 17,586 19,085
2/29/00 17,480 19,079
5/31/00 17,664 19,280
8/31/00 18,927 20,375
Average Annual Total Return of Class A Shares of the Fund at 8/31/00/2/
1-Year 1.08% 5-Year 4.98% 10-Year 6.65%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
--Oppenheimer Main Street California Municipal Fund (Class B)
--Lehman Brothers Municipal Bond Index
[LINE GRAPH]
California Fund Lehman Brothers Municipal Bond Index
10/29/93 10,000 10,000
12/31/93 10,061 10,140
3/31/94 9,463 9,584
6/30/94 9,458 9,689
9/30/94 9,470 9,756
12/31/94 9,189 9,616
3/31/95 9,970 10,296
6/30/95 10,204 10,544
9/30/95 10,417 10,847
12/31/95 10,882 11,295
3/31/96 10,734 11,159
6/30/96 10,782 11,244
8/31/96 (1) 10,874 11,343
11/30/96 11,378 11,845
2/28/97 11,428 11,926
5/31/97 11,522 12,044
8/31/97 11,879 12,392
11/30/97 12,192 12,694
2/28/98 12,505 13,016
5/31/98 12,572 13,174
8/31/98 12,856 13,464
11/30/98 13,032 13,679
2/28/99 13,089 13,816
5/31/99 13,018 13,789
8/31/99 12,545 13,531
11/30/99 12,349 13,533
2/29/00 12,275 13,529
5/31/00 12,404 13,671
8/31/00 13,290 14,448
Average Annual Total Return of Class A Shares of the Fund at 8/31/00/2/
1-Year 0.08% 5-Year 4.61% 4.25%
The performance information for the Lehman Brothers Municipal Bond Index in the
graphs begins on 6/30/90 for Class A and 10/31/93 for Class B.
1. The Fund changed its fiscal year end from 6/30 to 8/31.
2. See page 9 for further details.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
8 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
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NOTES
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In reviewing performance and rankings, please remember that past performance
does not guarantee future results. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. The Fund's
performance may from time to time be subject to substantial short-term changes,
particularly during periods of market or interest rate volatility. For quarterly
updates on the Fund's performance, please contact your financial advisor, call
us at 1.800.525.7048 or visit our website at www.oppenheimerfunds.com.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not show the effects of income taxes on an individual's investment. Taxes may
reduce your actual investment returns on income or gains paid by the Fund or any
gains you may realize if you sell your shares.
Class A shares were first publicly offered on 5/18/90. Class A returns include
the current maximum initial sales charge of 4.75%. The Fund's maximum sales
charge for Class A shares was lower prior to 11/2/91, so actual performance may
have been higher.
Class B shares of the Fund were first publicly offered on 10/29/93. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 2% (5-year). Because Class B shares convert to Class A shares 72 months
after purchase, the "life-of-class" return for Class B uses Class A performance
for the period after conversion. Class B shares are subject to an annual 0.75%
asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
9 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
Financials
10 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
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STATEMENT OF INVESTMENTS August 31, 2000
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<TABLE>
<CAPTION>
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
===================================================================================================================================
Municipal Bonds and Notes--97.9%
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California--88.8%
<S> <C> <C> <C>
Anaheim, CA PFAU TXAL RB, MBIA Insured,
Inverse Floater, 8.42%, 12/28/18/1/ Aaa/AAA $1,000,000 $1,183,750
-----------------------------------------------------------------------------------------------------------------------------------
Berkeley, CA HF RRB, Alta Bates Medical Center,
Prerefunded, Series A, 6.50%, 12/1/11 A2/NR 1,425,000 1,500,739
-----------------------------------------------------------------------------------------------------------------------------------
CA Assn. of Bay Area Governments FAU for
Non-profit Corps. Refunding COP, American Baptist
Homes, Series A, 6.20%, 10/1/27 NR/BBB 940,000 839,815
-----------------------------------------------------------------------------------------------------------------------------------
CA Assn. of Bay Area Governments FAU for
Non-profit Corps. Refunding COP, Rhonda Haas
Goldman Plaza, 5.125%, 5/15/23 NR/AA- 700,000 666,575
-----------------------------------------------------------------------------------------------------------------------------------
CA CDAU MH RB, Village Riviera Hills, Series E,
5.45%, 2/1/25 NR/AAA 985,000 972,904
-----------------------------------------------------------------------------------------------------------------------------------
CA Foothill/Eastern Corridor Agency Toll Road RB,
Sr. Lien, Prerefunded, Series A, 6.50%, 1/1/32 Aaa/AAA/AAA 1,400,000 1,581,076
-----------------------------------------------------------------------------------------------------------------------------------
CA Foothill/Eastern Corridor Agency Toll Road RRB,
Zero Coupon, 5.98%, 1/15/21/2/ Baa3/BBB-/BBB 5,000,000 1,500,900
-----------------------------------------------------------------------------------------------------------------------------------
CA Foothill/Eastern Corridor Agency Toll Road RRB,
Zero Coupon, 6%, 1/15/22/2/ Baa3/BBB-/BBB 5,500,000 1,546,655
-----------------------------------------------------------------------------------------------------------------------------------
CA HFA SFM Purchase RB, Series A-2, 6.45%, 8/1/25 Aaa/AAA 1,970,000 2,009,262
-----------------------------------------------------------------------------------------------------------------------------------
CA HFA SFM RB, Series C, 6.75%, 2/1/25 Aa2/AA- 4,755,000 4,866,029
-----------------------------------------------------------------------------------------------------------------------------------
CA Infrastructure & ED Bank RB, American Center
for Wine, Food & Arts, 5.55%, 12/1/12 NR/A/A 1,710,000 1,809,077
-----------------------------------------------------------------------------------------------------------------------------------
CA PCFAU RB, Pacific Gas & Electric Co. Project,
Series B, 6.35%, 6/1/09 A1/AA- 2,000,000 2,110,160
-----------------------------------------------------------------------------------------------------------------------------------
CA PWBL RB, State Prison Department of Corrections,
Series E, FSA Insured, 5.50%, 6/1/15 Aaa/AAA/AAA 2,000,000 2,134,580
-----------------------------------------------------------------------------------------------------------------------------------
CA Rural Home Mtg. FAU SFM RB, Mtg.-Backed
Securities Program, Series B, 7.75%, 9/1/26 NR/AAA 820,000 873,087
-----------------------------------------------------------------------------------------------------------------------------------
CA Rural Home Mtg. FAU SFM RB, Mtg.-Backed
Securities Program, Series D, Cl. 5, 6.70%, 5/1/29 NR/AAA 1,890,000 2,160,780
-----------------------------------------------------------------------------------------------------------------------------------
CA SCDAU COP, 7.25%, 11/1/29 NR/NR 2,000,000 2,052,820
-----------------------------------------------------------------------------------------------------------------------------------
CA SCDAU COP, Winward Schools, 7.25%, 11/1/29 NR/NR 500,000 508,435
-----------------------------------------------------------------------------------------------------------------------------------
CA SCDAU Revenue Refunding COP, Inverse Floater,
6.359%, 11/1/15/1/ A1/NR 1,200,000 1,219,500
-----------------------------------------------------------------------------------------------------------------------------------
Campbell, CA RA TXAL RB, Central Campbell
Redevelopment Project, Series B, 6.60%, 10/1/32 Baa3/BBB- 1,100,000 1,151,436
-----------------------------------------------------------------------------------------------------------------------------------
Contra Costa Cnty., CA CFD No. 91-1, SPTX RRB,
5.58%, 8/1/16 NR/NR 3,075,000 2,970,450
-----------------------------------------------------------------------------------------------------------------------------------
Corona, CA SFM RB, Sub. Lien, Series B, 6.30%, 11/1/28 A2/NR 800,000 806,512
-----------------------------------------------------------------------------------------------------------------------------------
East Palo Alto, CA RA TXAL RB, 6.625%, 10/1/29 NR/NR 850,000 891,098
-----------------------------------------------------------------------------------------------------------------------------------
Escondido, CA Union High SDI CAP GOB, MBIA Insured,
Escrowed to Maturity, Zero Coupon, 3.48%, 11/1/19/2/ Aaa/AAA 2,835,000 1,020,033
-----------------------------------------------------------------------------------------------------------------------------------
Folsom, CA CFD No. 10 SPTX Bonds, 6.875%, 9/1/19 NR/NR 2,000,000 2,119,600
</TABLE>
11 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
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STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
-----------------------------------------------------------------------------------------------------------------------------------
California Continued
<S> <C> <C> <C>
Fontana, CA RA TXAL GORB, Jurupa Hills Redevelopment
Project, Prerefunded, Series A, 7.10%, 10/1/23 NR/BBB+ $1,960,000 $2,114,448
-----------------------------------------------------------------------------------------------------------------------------------
Fresno, CA HAU MH RB, Central Valley Coalition
Projects, Series A, 5.50%, 7/1/30 Aaa/AAA/AAA 355,000 356,843
-----------------------------------------------------------------------------------------------------------------------------------
Fresno, CA USD GORB, Series A, MBIA Insured,
6.55%, 8/1/20 Aaa/AAA/AAA 1,225,000 1,435,859
-----------------------------------------------------------------------------------------------------------------------------------
Fresno, CA USD GOUN, Series A, MBIA Insured,
6.40%, 8/1/16 Aaa/AAA/AAA 1,000,000 1,173,150
-----------------------------------------------------------------------------------------------------------------------------------
Glendale, CA EU RB, MBIA Insured, 5.90%, 2/1/25 Aaa/AAA/AAA 5,000,000 5,258,400
-----------------------------------------------------------------------------------------------------------------------------------
Golden West Schools FAU CAP RRB, Series A,
MBIA Insured, Zero Coupon, 6.14%, 2/1/20/2/ Aaa/AAA/AAA 2,480,000 860,734
-----------------------------------------------------------------------------------------------------------------------------------
Golden West Schools FAU CAP RRB, Series A,
MBIA Insured, Zero Coupon, 6.14%, 8/1/20/2/ Aaa/AAA/AAA 2,000,000 675,480
-----------------------------------------------------------------------------------------------------------------------------------
Lake Elsinore, CA School FAU RRB, Horsethief
Canyon, 5.35%, 9/1/10 NR/NR 2,000,000 1,989,600
-----------------------------------------------------------------------------------------------------------------------------------
Las Virgenes, CA USD CAP Bonds, Series A,
MBIA Insured, Zero Coupon, 4.95%, 11/1/12/2/ Aaa/AAA/AAA 2,095,000 1,165,951
-----------------------------------------------------------------------------------------------------------------------------------
Lincoln, CA Improvement Bond Act 1915 PFAU RB,
6.20%, 9/2/25 NR/NR 1,490,000 1,501,220
-----------------------------------------------------------------------------------------------------------------------------------
Long Beach, CA Harbor RRB, Series A, FGIC Insured,
6%, 5/15/10 Aaa/AAA 500,000 552,820
-----------------------------------------------------------------------------------------------------------------------------------
Los Angeles Cnty., CA CAP COP, Disney Parking
Project, Zero Coupon, 6.95%, 9/1/11/2/ A3/BBB+/A- 2,340,000 1,333,940
-----------------------------------------------------------------------------------------------------------------------------------
Los Angeles Cnty., CA MTAU Sales Tax RRB, Series A,
MBIA Insured, 5.25%, 7/1/15 Aaa/AAA/AAA 2,000,000 2,046,900
-----------------------------------------------------------------------------------------------------------------------------------
Los Angeles Cnty., CA Participation Certificates RB,
Zero Coupon, 6.30%, 9/1/16/2/ Aaa/AAA/AAA 1,495,000 647,873
-----------------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA USD GOUN, FGIC Insured,
7.47%, 7/1/15/3/,/4/ Aa3/AA- 600,000 676,308
-----------------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA USD GOUN, FGIC Insured,
7.47%, 7/1/16/3/,/4/ Aa3/AA- 600,000 676,308
-----------------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA USD GOUN, FGIC Insured,
7.47%, 7/1/17/3/,/4/ Aa3/AA- 360,000 405,785
-----------------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA USD GOUN, Series A, FGIC Insured,
6%, 7/1/15 Aaa/AAA/AAA 1,000,000 1,119,990
-----------------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA Water & Power Department RRB,
5.50%, 10/15/12 Aa3/AAA/AAA 1,000,000 1,070,610
-----------------------------------------------------------------------------------------------------------------------------------
Norco, CA CDD No. 97-1 SPTX Bonds, 7.10%, 10/1/30 NR/NR 320,000 336,944
-----------------------------------------------------------------------------------------------------------------------------------
Orange Cnty., CA CFD No. 99-1 SPTX Bonds,
Series A, 6.70%, 8/15/29 NR/NR 650,000 684,899
-----------------------------------------------------------------------------------------------------------------------------------
Palmdale, CA Civic Authority RRB, Merged
Redevelopment Project, Prerefunded, Series A,
6.60%, 9/1/34 Aaa/AAA 595,000 660,998
-----------------------------------------------------------------------------------------------------------------------------------
Palmdale, CA Civic Authority RRB, Merged
Redevelopment Project, Unrefunded Balance,
Series A, 6.60%, 9/1/34 NR/A 405,000 428,340
</TABLE>
12 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
-----------------------------------------------------------------------------------------------------------------------------------
California Continued
<S> <C> <C> <C>
Pittsburg, CA RA TXAL RB, Los Medanos Community
Development Project, AMBAC Insured, 5.75%, 8/1/16 Aaa/AAA $ 720,000 $ 772,812
-----------------------------------------------------------------------------------------------------------------------------------
Pittsburg, CA RA TXAL Refunding Bonds,
Los Medanos Community Development Project,
Sub Lien, 6.20%, 8/1/19 NR/BBB 1,000,000 1,020,860
-----------------------------------------------------------------------------------------------------------------------------------
Pomona, CA SFM RRB, Escrowed to Maturity,
Series A, 7.60%, 5/1/23 Aaa/AAA 2,500,000 3,099,550
-----------------------------------------------------------------------------------------------------------------------------------
Pomona, CA USD GORB, Series A, MBIA Insured,
6.15%, 8/1/15 Aaa/AAA 500,000 563,505
-----------------------------------------------------------------------------------------------------------------------------------
Pomona, CA USD Refunding GOUN, Series A,
MBIA Insured, 6.45%, 8/1/22 Aaa/AAA 1,000,000 1,157,250
-----------------------------------------------------------------------------------------------------------------------------------
Port Oakland, CA RB, Series 666A, 6.669%, 11/1/19/3/,4 NR/NR 1,200,000 1,335,528
-----------------------------------------------------------------------------------------------------------------------------------
Redding, CA Electric System Revenue COP,
FGIC Insured, Inverse Floater, 7.129%, 6/1/19/1/ Aaa/AAA/AAA 1,150,000 1,171,563
-----------------------------------------------------------------------------------------------------------------------------------
Redding, CA Electric System Revenue COP,
MBIA Insured, Inverse Floater, 8.475%, 7/8/22/1/ Aaa/AAA 500,000 596,875
-----------------------------------------------------------------------------------------------------------------------------------
Richmond, CA Wastewater RB, FGIC Insured,
5.80%, 8/1/16 Aaa/AAA 765,000 824,991
-----------------------------------------------------------------------------------------------------------------------------------
Riverside Cnty., CA CFD No. 88-12 SPTX Bonds,
Prerefunded, 7.55%, 9/1/17 NR/NR 1,500,000 1,530,000
-----------------------------------------------------------------------------------------------------------------------------------
Riverside Cnty., CA PFAU TXAL RRB, Redevelopment
Projects, Series A, 5.625%, 10/1/33 Baa2/BBB- 1,650,000 1,569,084
-----------------------------------------------------------------------------------------------------------------------------------
Riverside Cnty., CA SFM RB, Escrowed to Maturity,
Series A, 7.80%, 5/1/21 Aaa/AAA 1,000,000 1,275,230
-----------------------------------------------------------------------------------------------------------------------------------
Riverside, CA Water RRB, 5.375%, 10/1/12 NR/AA/AA 1,000,000 1,060,450
-----------------------------------------------------------------------------------------------------------------------------------
Roseville, CA SPTX RB, Woodcreek West Community
Facility No. 1 Project, 6.50%, 9/1/15 NR/NR 1,500,000 1,573,935
-----------------------------------------------------------------------------------------------------------------------------------
Sacramento Cnty., CA Sanitation District FAU RRB,
Series A, 6%, 12/1/15 Aa3/AA/AA 230,000 255,015
-----------------------------------------------------------------------------------------------------------------------------------
Sacramento Cnty., CA SFM RB, Escrowed to Maturity,
8%, 7/1/16 Aaa/AAA 2,810,000 3,639,006
-----------------------------------------------------------------------------------------------------------------------------------
Sacramento, CA MUD Electric RRB, FGIC Insured,
Inverse Floater, 8.564%, 8/15/18/1/ Aaa/AAA/AAA 1,500,000 1,646,250
-----------------------------------------------------------------------------------------------------------------------------------
Sacramento, CA USD GOUN, Series A, 5.875%, 7/1/21 Aa3/NR/AA 430,000 455,787
-----------------------------------------------------------------------------------------------------------------------------------
Sacramento, CA USD GOUN, Series A, 5.875%, 7/1/23 Aa3/NR/AA 285,000 300,396
-----------------------------------------------------------------------------------------------------------------------------------
Salinas Valley, CA Solid Waste Authority RB,
5.80%, 8/1/27 Baa3/BBB 1,665,000 1,617,464
-----------------------------------------------------------------------------------------------------------------------------------
San Diego Cnty., CA Water Authority Revenue COP,
Prerefunded, Series 91-B, MBIA Insured, Inverse Floater,
8.07%, 4/8/21/1/ Aaa/AAA 1,000,000 1,237,500
-----------------------------------------------------------------------------------------------------------------------------------
San Francisco, CA Bay Area Rapid Transit District Sales
Tax RRB, AMBAC Insured, 6.75%, 7/1/11 Aaa/AAA/AAA 1,000,000 1,194,500
-----------------------------------------------------------------------------------------------------------------------------------
San Francisco, CA City & Cnty. International Airport
Commission RB, Second Series Issue 13-B, MBIA Insured,
8%, 5/1/07 Aaa/AAA 1,140,000 1,349,201
</TABLE>
13 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
-----------------------------------------------------------------------------------------------------------------------------------
California Continued
<S> <C> <C> <C>
San Francisco, CA City & Cnty. International Airport
Commission RB, Second Series Issue 14-A, MBIA Insured,
8%, 5/1/07 Aaa/AAA $1,290,000 $1,526,728
------------------------------------------------------------------------------------------------------------------------------------
San Francisco, CA City & Cnty. RA Lease RB, CAP,
George R. Moscone Project, Zero Coupon,
5.36%, 7/1/10 /2/ A1/A-/A+ 4,500,000 2,832,075
------------------------------------------------------------------------------------------------------------------------------------
San Francisco, CA City & Cnty. Redevelopment
FAU TXAL CAP Refunding Bonds, Redevelopment
Projects, Series C, Zero Coupon, 5.99%, 8/1/13 /2/ A2/A/AAA 750,000 396,555
------------------------------------------------------------------------------------------------------------------------------------
San Joaquin Hills, CA Transportation Corridor Agency
Toll Road RB, Sr. Lien, Prerefunded, 6.75%, 1/1/32 Aaa/AAA/AAA 3,500,000 3,777,200
------------------------------------------------------------------------------------------------------------------------------------
South Orange Cnty., CA PFAU SPTX RB, Foothill Area,
Series C, FGIC Insured, 8%, 8/15/08 Aaa/AAA/AAA 1,500,000 1,875,720
------------------------------------------------------------------------------------------------------------------------------------
Southern CA Home FAU SFM RB, Series A,
7.35%, 9/1/24 NR/AAA 145,000 148,600
------------------------------------------------------------------------------------------------------------------------------------
Southern CA Metropolitan Water District RRB,
Inverse Floater, 6.253%, 10/30/20 /1/ Aa2/AA 1,200,000 1,201,500
------------------------------------------------------------------------------------------------------------------------------------
Southern CA PPAU Transmission Project RB,
Inverse Floater, 7.184%, 7/1/12 /1/ Aa3/A+ 2,100,000 2,254,875
------------------------------------------------------------------------------------------------------------------------------------
Tejon Ranch, CA PFFAU CFD No. 1 SPTX Bonds,
Series A, 7.20%, 9/1/30 NR/NR 600,000 619,116
------------------------------------------------------------------------------------------------------------------------------------
West Covina, CA COP, Queen of the Valley Hospital,
Prerefunded, 6.50%, 8/15/19 A2/NR 1,120,000 1,239,974
-----------
110,787,768
------------------------------------------------------------------------------------------------------------------------------------
U.S. Possessions--9.1%
PR CMWLTH GORB, MBIA Insured, Inverse Floater,
7.504%, 7/1/08 /1/ Aaa/AAA 1,500,000 1,603,125
------------------------------------------------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Inverse Floater, 5.261%, 7/1/28 /1/,/3/ NR/NR 5,000,000 4,412,950
------------------------------------------------------------------------------------------------------------------------------------
PR Housing Finance Corp. SFM RB, Portfolio 1, Series B,
7.65%, 10/15/22 Aaa/AAA 40,000 40,842
------------------------------------------------------------------------------------------------------------------------------------
PR Industrial, Tourist, Educational, Medical &
Environmental Control Facilities RB, Cogen Facilities
AES Puerto Rico Project, 6.625%, 6/1/26 Baa2/NR/BBB 1,380,000 1,441,879
------------------------------------------------------------------------------------------------------------------------------------
PR Industrial, Tourist, Educational, Medical &
Environmental Control Facilities RB, Mennonite
General Hospital Project, Series A, 6.50%, 7/1/12 NR/BBB-/BBB 585,000 563,928
------------------------------------------------------------------------------------------------------------------------------------
Virgin Islands PFAU RB, Series A, 6.375%, 10/1/19 NR/BBB- 1,515,000 1,562,889
------------------------------------------------------------------------------------------------------------------------------------
Virgin Islands PFAU RB, Sub. Lien, Series E, 6%, 10/1/22 NR/NR 1,800,000 1,732,842
-----------
11,358,455
-----------
Total Municipal Bonds and Notes (Cost $117,235,452) 122,146,223
</TABLE>
14 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
Market
Principal Value
Amount See Note 1
==========================================================================================================
Short-Term Tax-Exempt Obligations--1.1%
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
CA M-S-R PPA RRB, San Juan Project, Sub. Lien, Series E,
MBIA Insured, 3.50%, 9/1/00 /4/ (Cost $1,400,000) $ 1,400,000 $ 1,400,000
----------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $118,635,452) 99.0% 123,546,223
----------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.0 1,225,607
---------------------------
Net Assets 100.0% $ 124,771,830
===========================
</TABLE>
Footnotes to Statement of Investments
To simplify the listings of securities, abbreviations are used per the table
below:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CAP Capital Appreciation MUD Municipal Utility District
CDD Community Development District NR Not Rated
CDAU Communities Development Authority PCFAU Pollution Control Finance Authority
CFD Community Facilities District PFAU Public Finance Authority
CMWLTH Commonwealth PFFAU Public Facilities Finance Authority
COP Certificates of Participation PPA Public Power Agency
ED Economic Development PPAU Public Power Authority
EU Electric Utilities PWBL Public Works Board Lease
FAU Finance Authority RA Redevelopment Agency
GOB General Obligation Bonds RB Revenue Bonds
GORB General Obligation Refunding Bonds RRB Revenue Refunding Bonds
GOUN General Obligation Unlimited Nts. SCDAU Statewide Communities Development
HAU Housing Authority Authority
HF Health Facilities SDI School District
HFA Housing Finance Agency SFM Single Family Mtg.
HTAU Highway & Transportation Authority SPTX Special Tax
MH Multifamily Housing TXAL Tax Allocation
MTAU Metropolitan Transportation Authority USD Unified School District
</TABLE>
1. Represents the current interest rate for a variable rate bond known as an
"inverse floater", which pays interest at a rate that varies inversely with
short-term interest rates. As interest rates rise, inverse floaters produce less
current income. Their price may be more volatile than the price of a comparable
fixed-rate security. Inverse floaters amount to $16,527,888 or 13.25% of the
Fund's net assets as of August 31, 2000.
2. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
3. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Directors. These securities amount to $7,506,879 or 6.02% of the Fund's net
assets as of August 31, 2000.
4. Represents the current interest rate for a variable or increasing rate
security.
15 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
Footnotes to Statement of Investments Continued
As of August 31, 2000, securities subject to the alternative minimum tax amount
to $25,878,680 or 20.74% of the Fund's net assets.
Distribution of investments by industry, as a percentage of total investments at
value, is as follows:
Industry Market Value Percent
---------------------------------------------------------------------
Special Assessment $ 24,301,525 19.7%
Single Family Housing 18,918,899 15.3
Electric Utilities 13,769,842 11.1
Highways 12,818,781 10.4
General Obligation 9,243,581 7.5
Sales Tax 7,626,469 6.2
Municipal Leases 6,948,469 5.6
Marine/Aviation Facilities 5,121,120 4.1
Water Utilities 4,570,060 3.7
Hospital/Healthcare 4,524,141 3.7
Not-for-Profit Organizations 3,861,897 3.1
Education 3,201,899 2.6
Pollution Control 2,110,160 1.7
Resource Recovery 1,617,464 1.3
Adult Living Facilities 1,506,390 1.2
Higher Education 1,352,616 1.1
Sewer Utilities 1,080,006 0.9
Multi-Family Housing 972,904 0.8
----------------------------------
Total $ 123,546,223 100.0%
==================================
See accompanying Notes to Financial Statements.
16 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
==========================================================================================================
Assets
----------------------------------------------------------------------------------------------------------
<S> <C>
Investments, at value (cost $118,635,452)--see accompanying statement $123,546,223
----------------------------------------------------------------------------------------------------------
Cash 120,604
----------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 1,529,840
Shares of capital stock sold 122,823
Other 480
-----------
Total assets 125,319,970
==========================================================================================================
Liabilities
----------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Dividends 394,045
Shares of capital stock redeemed 79,328
Shareholder reports 30,874
Transfer and shareholder servicing agent fees 19,580
Distribution and service plan fees 11,335
Directors' compensation 1,993
Other 10,985
-----------
Total liabilities 548,140
==========================================================================================================
Net Assets $124,771,830
============
==========================================================================================================
Composition of Net Assets
----------------------------------------------------------------------------------------------------------
Par value of shares of capital stock $101,789
----------------------------------------------------------------------------------------------------------
Additional paid-in capital 125,954,123
----------------------------------------------------------------------------------------------------------
Overdistributed net investment income (236,789)
----------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (5,958,064)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 4,910,771
-----------
Net Assets $124,771,830
============
==========================================================================================================
Net Asset Value Per Share
----------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redempton price per share (based on net assets of
$97,451,988 and 7,948,209 shares of capital stock outstanding) $12.26
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price) $12.87
----------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $27,319,842
and 2,230,702 shares of capital stock outstanding) $12.25
</TABLE>
See accompanying Notes to Financial Statements.
17 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended August 31, 2000
--------------------------------------------------------------------------------
================================================================================
Investment Income
--------------------------------------------------------------------------------
Interest $ 7,715,621
================================================================================
Expenses
--------------------------------------------------------------------------------
Management fees 696,662
--------------------------------------------------------------------------------
Distribution and service plan fees:
Class B 274,823
--------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 68,699
--------------------------------------------------------------------------------
Shareholder reports 43,534
--------------------------------------------------------------------------------
Custodian fees and expenses 13,613
--------------------------------------------------------------------------------
Directors' compensation 3,312
--------------------------------------------------------------------------------
Other 29,412
------
Total expenses 1,130,055
Less expenses paid indirectly (13,357)
Less waiver of expenses (114,242)
--------
Net expenses 1,002,456
================================================================================
Net Investment Income 6,713,165
================================================================================
Realized and Unrealized Gain (Loss)
--------------------------------------------------------------------------------
Net realized loss on:
Investments (5,303,497)
Closing of futures contracts (546,817)
--------
Net realized loss (5,850,314)
--------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 5,707,201
---------
Net realized and unrealized loss (143,113)
================================================================================
Net Increase in Net Assets Resulting from Operations $ 6,570,052
===========
See accompanying Notes to Financial Statements.
18 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended August 31, 2000 1999
==================================================================================================================
Operations
------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net investment income $ 6,713,165 $ 6,760,089
------------------------------------------------------------------------------------------------------------------
Net realized loss (5,850,314) (27,248)
------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 5,707,201 (9,255,882)
-----------------------------
Net increase (decrease) in net assets resulting from operations 6,570,052 (2,523,041)
==================================================================================================================
Dividends and/or Distributions to Shareholders
------------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (5,434,598) (5,577,537)
Class B (1,231,308) (1,114,948)
------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (61,948) --
Class B (17,107) --
==================================================================================================================
Capital Stock Transactions
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from capital stock transactions:
Class A (11,972,085) 7,019,301
Class B (2,386,747) 8,515,921
==================================================================================================================
Net Assets
------------------------------------------------------------------------------------------------------------------
Total increase (decrease) (14,533,741) 6,319,696
------------------------------------------------------------------------------------------------------------------
Beginning of period 139,305,571 132,985,875
-----------------------------
End of period (including overdistributed net investment
income of $236,789 and $284,048, respectively) $ 124,771,830 $ 139,305,571
=============================
</TABLE>
See accompanying Notes to Financial Statements.
19 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year
Ended Ended
Aug. 31, June 30,
Class A 2000 1999 1998 1997 1996/1/ 1996
===============================================================================================================================
Per Share Operating Data
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.21 $13.02 $12.64 $12.16 $12.15 $12.09
-------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .65 .65 .65 .73 .12 .73
Net realized and unrealized gain (loss) .05 (.82) .51 .49 .01 .07
-------------------------------------------------------------------------------
Total income (loss) from
investment operations .70 (.17) 1.16 1.22 .13 .80
-------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.64) (.64) (.67) (.74) (.12) (.73)
Distributions from net realized gain (.01) -- (.11) -- -- --
Distributions in excess of net realized gain -- -- -- -- -- (.01)
-------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.65) (.64) (.78) (.74) (.12) (.74)
-------------------------------------------------------------------------------
Net asset value, end of period $12.26 $12.21 $13.02 $12.64 $12.16 $12.15
===============================================================================
===============================================================================================================================
Total Return, at Net Asset Value/2/ 6.12% (1.42)% 9.33% 10.24% 1.12% 6.73%
-------------------------------------------------------------------------------------------------------------------------------
===============================================================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $97,452 $109,575 $109,811 $89,991 $76,817 $76,913
-------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $98,956 $111,996 $99,678 $80,311 $77,584 $78,676
-------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:/3/
Net investment income 5.53% 5.03% 5.04% 5.91% 6.00% 5.99%
Expenses 0.69% 0.67% 0.69%/4/ 0.59%/4/ 0.57%/4/ 0.58%/4/
Expenses, net of indirect expenses
and waiver of expenses 0.59% 0.51% 0.53% N/A N/A N/A
-------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 38% 25% 30% 46% 1% 33%
</TABLE>
1. For the two months ended August 31, 1996. The Fund changed its fiscal year
end from June 30 to August 31.
2. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
20 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
Year Year
Ended Ended
Aug. 31, June 30,
Class B 2000 1999 1998 1997 1996/1/ 1996
===============================================================================================================================
Per Share Operating Data
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.20 $13.01 $12.63 $12.14 $12.14 $12.08
-------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .53 .53 .54 .60 .10 .61
Net realized and unrealized gain (loss) .06 (.83) .49 .50 -- .07
-------------------------------------------------------------------------------
Total income (loss) from
investment operations .59 (.30) 1.03 1.10 .10 .68
-------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.53) (.51) (.54) (.61) (.10) (.61)
Distributions from net realized gain (.01) -- (.11) -- -- --
Distributions in excess of net realized gain -- -- -- -- -- (.01)
-------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.54) (.51) (.65) (.61) (.10) (.62)
-------------------------------------------------------------------------------
Net asset value, end of period $12.25 $12.20 $13.01 $12.63 $12.14 $12.14
===============================================================================
===============================================================================================================================
Total Return, at Net Asset Value/2/ 5.08% (2.41)% 8.24% 9.24% 0.85% 5.66%
-------------------------------------------------------------------------------------------------------------------------------
===============================================================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $27,320 $29,730 $23,175 $11,919 $5,928 $5,442
-------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $27,546 $28,070 $18,087 $8,129 $5,767 $3,848
-------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:/3/
Net investment income 4.52% 4.02% 4.19% 4.85% 4.92% 4.94%
Expenses 1.68% 1.67% 1.70%/4/ 1.60%/4/ 1.62%/4/ 1.60%/4/
Expenses, net of indirect expenses
and waiver of expenses 1.58% 1.52% 1.53% N/A N/A N/A
-------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 38% 25% 30% 46% 1% 33%
</TABLE>
1. For the two months ended August 31, 1996. The Fund changed its fiscal year
end from June 30 to August 31.
2. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
21 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Main Street California Municipal Fund (the Fund) is a separate
series of Oppenheimer Main Street Funds, Inc., an open-end management investment
company registered under the Investment Company Act of 1940, as amended. The
Fund's investment objective is to seek as high a level of current income exempt
from federal and California personal income taxes as is available from investing
in municipal securities while attempting to preserve capital.
The Fund offers Class A and Class B shares. Class A shares are sold at their
offering price, which is normally net asset value plus a front-end sales charge.
Class B shares are sold without a front-end sales charge but may be subject to a
contingent deferred sales charge (CDSC). Both classes of shares have identical
rights to earnings, assets and voting privileges, except that each class has its
own expenses directly attributable to that class and exclusive voting rights
with respect to matters affecting that class. Classes A and B have separate
distribution and/or service plans. Class B shares will automatically convert to
Class A shares six years after the date of purchase. The following is a summary
of significant accounting policies consistently followed by the Fund.
--------------------------------------------------------------------------------
Securities Valuation. Securities listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the last sale price of
the security traded on that exchange prior to the time when the Fund's assets
are valued. In the absence of a sale, the security is valued at the last sale
price on the prior trading day, if it is within the spread of the closing bid
and asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Directors, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Directors. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
--------------------------------------------------------------------------------
Non-Diversification Risk. The Fund is "non-diversified" and can invest in the
securities of a single issuer without limit. To the extent the Fund invests a
relatively high percentage of its assets in the obligations of a single issuer
or a limited number of issuers, the Fund is subject to additional risk of loss
if those obligations lose market value or the borrower or issuer of those
obligations defaults.
--------------------------------------------------------------------------------
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated daily to
each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
22 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
As of August 31, 2000, the Fund had available for federal income tax purposes an
unused capital loss carryover as follows:
Expiring
-------------------------
2008 $1,001,388
--------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
--------------------------------------------------------------------------------
Classification of Dividends and Distributions to Shareholders. Net investment
income (loss) and net realized gain (loss) may differ for financial statement
and tax purposes. The character of dividends and distributions made during the
fiscal year from net investment income or net realized gains may differ from its
ultimate characterization for federal income tax purposes. Also, due to timing
of dividends and distributions, the fiscal year in which amounts are distributed
may differ from the fiscal year in which the income or realized gain was
recorded by the Fund.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended August 31, 2000, amounts have been reclassified to reflect a decrease
in paid-in capital of $302. Accumulated net realized loss on investments was
decreased by the same amount. Net assets of the Fund were unaffected by the
reclassifications.
--------------------------------------------------------------------------------
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
--------------------------------------------------------------------------------
Other. Investment transactions are accounted for as of trade date. Original
issue discount is accreted and premium is amortized in accordance with federal
income tax requirements. For municipal bonds acquired after April 30, 1993, on
disposition or maturity, taxable ordinary income is recognized to the extent of
the lesser of gain or market discount that would have accrued over the holding
period. Realized gains and losses on investments and unrealized appreciation and
depreciation are determined on an identified cost basis, which is the same basis
used for federal income tax purposes.
There are certain risks arising from geographic concentration in any state.
Certain revenue- or tax-related events in a state may impair the ability of
certain issuers of municipal securities to pay principal and interest on their
obligations.
23 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies Continued
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
================================================================================
2. Capital Stock
The Fund has authorized 16,250,000 shares of $.01 par value capital stock of
each class. Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Year Ended August 31, 2000 Year Ended August 31, 1999
Shares Amount Shares Amount
--------------------------------------------------------------------------------------
Class A
<S> <C> <C> <C> <C>
Sold 1,175,149 $13,941,190 1,681,985 $21,674,388
Dividends and/or
distributions reinvested 288,800 3,425,052 281,702 3,627,456
Redeemed (2,487,729) (29,338,327) (1,423,149) (18,282,543)
----------------------------------------------------------
Net increase (decrease) (1,023,780) $(11,972,085) 540,538 $7,019,301
==========================================================
--------------------------------------------------------------------------------------
Class B
Sold 538,104 $6,378,341 964,557 $12,473,622
Dividends and/or
distributions reinvested 74,919 886,994 59,086 758,691
Redeemed (819,968) (9,652,082) (367,694) (4,716,392)
----------------------------------------------------------
Net increase (decrease) (206,945) $(2,386,747) 655,949 $8,515,921
==========================================================
</TABLE>
================================================================================
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended August 31, 2000, were
$46,834,647 and $63,267,452, respectively.
As of August 31, 2000, unrealized appreciation (depreciation) based on cost of
securities for federal income tax purposes of $118,746,517 was:
Gross unrealized appreciation $ 5,944,069
Gross unrealized depreciation (1,144,363)
--------------
Net unrealized appreciation $ 4,799,706
==============
24 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
================================================================================
4. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee of 0.55% of
average annual net assets if the Fund's net assets are $100 million or more (it
is reduced if assets are less). The Manager has voluntarily undertaken to limit
its fees to 0.40% of average annual net assets if the Fund's assets are $100
million or more. The Manager can terminate or amend that undertaking at any
time. Effective April 1, 2000, the Manager withdrew the voluntary undertaking to
limit management fees. The Fund's management fee for the year ended August 31,
2000, was an annualized rate of 0.55%, before any waiver by the Manager if
applicable.
--------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund on an
"at-cost" basis. OFS also acts as the transfer and shareholder servicing agent
for the other Oppenheimer funds.
--------------------------------------------------------------------------------
Distribution and Service Plan Fees. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
Aggregate Class A Commissions Commissions
Front-End Front-End on Class A on Class B
Sales Charges Sales Charges Shares Shares
on Class A Retained by Advanced by Advanced by
Year Ended Shares Distributor Distributor/1/ Distributor/1/
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
August 31,2000 $214,509 $31,285 $24,687 $222,695
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B shares from its own resources at the
time of sale.
<TABLE>
<CAPTION>
Class A Class B
Contingent Deferred Contingent Deferred
Sales Charges Sales Charges
Year Ended Retained by Distributor Retained by Distributor
------------------------------------------------------------------------------------------------
<S> <C> <C>
August 31,2000 $3,163 $116,479
</TABLE>
The Fund has adopted a Distribution and Service Plan for Class B shares under
Rule 12b-1 of the Investment Company Act. Under those plans the Fund pays the
Distributor for all or a portion of its costs incurred in connection with the
distribution and/or servicing of the shares of the particular class.
25 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates Continued
Class B Distribution and Service Plan Fee. Under the plan, service fees and
distribution fees are computed on the average of the net asset value of shares
in the respective class, determined as of the close of each regular business day
during the period. The Class B plan provides for the Distributor to be
compensated at a flat rate, whether the Distributor's distribution expenses are
more or less than the amounts paid by the Fund under the plan during the period
for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
asset-based sales charges on Class B shares allows investors to buy shares
without a front-end sales charge while allowing the Distributor to compensate
dealers that sell those shares.
The Distributor's actual expenses in selling Class B shares may be more than
the payments it receives from the contingent deferred sales charges collected on
redeemed shares and asset-based sales charges from the Fund under the plans. If
the plan is terminated by the Fund, the Board of Trustees may allow the Fund to
continue payments of the asset-based sales charge to the Distributor for
distributing shares before the plan was terminated. The plan allows for the
carry-forward of distribution expenses, to be recovered from asset-based sales
charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended August 31, 2000,
were as follows:
<TABLE>
<CAPTION>
Distributor's Distributor's
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $274,823 $223,333 $1,046,710 3.83%
</TABLE>
================================================================================
5. Futures Contracts
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a particular price on a stipulated future
date at a negotiated price. Futures contracts are traded on a commodity
exchange. The Fund may buy and sell futures contracts that relate to broadly
based securities indices "financial futures" or debt securities "interest rate
futures" in order to gain exposure to or to seek to protect against changes in
market value of stock and bonds or interest rates. The Fund may also buy or
write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against increases in
interest rates and decreases in market value of portfolio securities. The Fund
may also purchase futures contracts to gain exposure to changes in interest
rates as it may be more efficient or cost effective than actually buying fixed
income securities.
26 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
Upon entering into a futures contract, the Fund is required to deposit
either cash or securities (initial margin) in an amount equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses. The Fund recognizes a realized gain or loss when the contract is
closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable
and/or payable for the daily mark to market for variation margin.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
================================================================================
6. Bank Borrowings
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.45%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of 0.08%
per annum.
The Fund had no borrowings outstanding during the year ended August 31,
2000.
================================================================================
7. Other Matters
On February 29, 2000, the Board of Trustees approved the reorganization of
Oppenheimer Main Street California Municipal Fund with and into Oppenheimer
California Municipal Fund. Shareholders of Oppenheimer Main Street California
Municipal Fund will be asked to approve a reorganization whereby shareholders
would receive shares of Oppenheimer California Municipal Fund. If shareholder
approval is received, it is expected that the reorganization will occur during
the fourth quarter of calendar year 2000.
27 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
The Board of Directors and Shareholders of
Oppenheimer Main Street California Municipal Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Main Street California Municipal Fund, including the statement of
investments, as of August 31, 2000, and the related statement of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
four years in the period then ended, the two months ended August 31, 1996, and
the year ended June 30, 1996. These financial statements and financial
highlights are the responsibility of the Fund's 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 auditing standards generally
accepted in the United States of America. 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
securities owned as of August 31, 2000, by correspondence with the custodian. 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
Oppenheimer Main Street California Municipal Fund as of August 31, 2000, the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended, and the financial highlights
for each of the four years in the period then ended, the two months ended August
31, 1996, and the year ended June 30, 1996, in conformity with accounting
principles generally accepted in the United States of America.
Deloitte & Touche LLP
Denver, Colorado
September 22, 2000
28 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION Unaudited
--------------------------------------------------------------------------------
In early 2001 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 2000. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Dividends and distributions of $0.0607 and $0.0502 per share were paid to
Class A and Class B shareholders, respectively, on December 10, 1999, of which
$0.0070 was designated as a "capital gain distribution" for federal income tax
purposes. Whether received in stock or in cash, the capital gain distribution
should be treated by shareholders as a gain from the sale of capital assets held
for more than one year (long-term capital gains).
None of the dividends paid by the Fund during the year ended August 31,
2000, are eligible for the corporate dividend-received deduction. The dividends
were derived from interest on municipal bonds and are not subject to federal
income taxes. To the extent a shareholder is subject to any state or local tax
laws, some or all of the dividends may be taxable.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
29 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
OPPENHEIMER MAIN STREET(R) CALIFORNIA MUNICIPAL FUND
--------------------------------------------------------------------------------
A Series of Oppenheimer Main Street Funds, Inc.
================================================================================
Officers and Directors James C. Swain, Director and Chairman of the Board
Bridget A. Macaskill, Director and President
Robert G. Avis, Director
George C. Bowen, Director
Jon S. Fossel, Director
Sam Freedman, Director
Raymond J. Kalinowski, Director
C. Howard Kast, Director
Robert M. Kirchner, Director
Merrell Hora, Vice President
Jerry Webman, Vice President
Andrew J. Donohue, Vice President and Secretary
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of The Bank of New York
Portfolio Securities
================================================================================
Independent Auditors Deloitte & Touche LLP
================================================================================
Legal Counsel Myer, Swanson, Adams & Wolf, P.C.
For more complete information about Oppenheimer Main
Street California Municipal Fund, please refer to the
Prospectus. To obtain a copy, call your financial
advisor, or call OppenheimerFunds Distributor, Inc. at
1.800.525.7048, or visit the OppenheimerFunds Internet
web site, at www.oppenheimerfunds.com.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, are not insured by the FDIC or any other
agency, and involve investment risks, including the
possible loss of the principal amount invested.
Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York,
NY 10048-0203.
(C)Copyright 2000 OppenheimerFunds, Inc. All rights
reserved.
30 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
OPPENHEIMERFUNDS FAMILY
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
=============================================================================================================
Global Equity
-------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
=============================================================================================================
Equity
-------------------------------------------------------------------------------------------------------------
Stock Stock & Bond
Emerging Technologies Fund Main Street(R) Growth & Income Fund
Enterprise Fund Quest Opportunity Value Fund
Discovery Fund Total Return Fund
Main Street(R) Small Cap Fund Quest Balanced Value Fund
Quest Small Cap Fund/1/ Capital Income Fund
MidCap Fund Multiple Strategies Fund
Main Street(R) Opportunity Fund Disciplined Allocation Fund/2/
Growth Fund Convertible Securities Fund
Capital Appreciation Fund
Large Cap Growth Fund Specialty
Disciplined Value Fund/2/ Real Asset Fund(R)
Quest Capital Value Fund Gold & Special Minerals Fund
Quest Value Fund
Trinity Growth Fund
Trinity Core Fund
Trinity Value Fund
=============================================================================================================
Fixed Income
-------------------------------------------------------------------------------------------------------------
Taxable Municipal
International Bond Fund California Municipal Fund/3/
World Bond Fund/2/ Main Street(R) California Municipal Fund/2/,/3/
High Yield Fund Florida Municipal Fund/3/
Champion Income Fund New Jersey Municipal Fund/3/
Strategic Income Fund New York Municipal Fund/3/
Bond Fund Pennsylvania Municipal Fund/3/
Senior Floating Rate Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund/2/
Limited-Term Government Fund Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York Municipal Fund
=============================================================================================================
Money Market/4/
-------------------------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
1. The Fund's name changed from "Oppenheimer Quest Small Cap Value Fund" on
5/19/00.
2. The Fund's Board has proposed to reorganize the Fund into another
Oppenheimer fund subject to shareholder approval.
3. Available to investors only in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds.
31 OPPENHEIMER MAIN STREET CALIFORNIA MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
INFORMATION AND SERVICES
--------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you can benefit from
special services designed to make investing simple. Whether
it's automatic investment plans, timely market updates, or
immediate account access, you can count on us whenever you
need assistance. So call us today, or visit our website--we're
here to help.
Internet
24-hr access to account information and transactions/1/
www.oppenheimerfunds.com
--------------------------------------------------------------
General Information
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
--------------------------------------------------------------
Telephone Transactions
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
--------------------------------------------------------------
PhoneLink
24-hr automated information and automated transactions
1.800.533.3310
--------------------------------------------------------------
Telecommunications Device for the Deaf (TDD)
Mon-Fri 9am-6:30pm ET
1.800.843.4461
--------------------------------------------------------------
OppenheimerFunds Market Hotline
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1.800.835.3104
--------------------------------------------------------------
Transfer and Shareholder Servicing Agent
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
--------------------------------------------------------------
Ticker Symbols Class A: MCATX Class B: OMCBX
1. At times this website may be inaccessible or its
transaction feature may be unavailable.
[GRAPHIC] OppenheimerFunds(R)
Distributor, Inc.
RA0725.001.0800 October 30, 2000
