UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-02790
Franklin California Tax-Free Income Fund
(Exact name of registrant as specified in charter)
_One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)
_Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906
(Name and address of agent for service)
Registrant's telephone number, including area code: 650 312-2000
Date of fiscal year end: 3/31
Date of reporting period: 3/31/21
Item 1. Reports to Stockholders.
a.)
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)
b.)
A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report. Not Applicable.
ANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
California
Tax-Free
Income
Fund
March
31,
2021
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up
for
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delivery
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Insured
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Not
part
of
the
annual
report
1
Shareholder
Letter
Dear
Shareholder:
During
the
12
months
ended
March
31,
2021,
the
novel
coronavirus
(COVID-19)
pandemic
caused
the
U.S.
economy
to
contract
in
2020’s
first
half.
For
the
remainder
of
2020,
the
economy
recovered
substantially
based
on
increased
business
and
residential
investment
and
consumer
spending.
The
U.S.
economy
also
showed
signs
of
strength
during
2021’s
first
quarter
as
federal
assistance
programs,
the
acceleration
of
COVID-19
vaccinations
and
robust
corporate
earnings
boosted
U.S.
equity
markets.
Before
the
reporting
period,
the
U.S.
Federal
Reserve,
in
its
efforts
to
support
U.S.
economic
activity,
lowered
the
federal
funds
rate
twice
in
March
2020
and
implemented
broad
quantitative
easing
measures
to
support
credit
markets.
During
the
reporting
period,
the
Federal
Reserve
held
its
key
rate
unchanged
at
0.25%,
but
it
continued
quantitative
easing
and
adjusted
its
policy
in
August
2020
to
allow
more
flexibility
to
keep
interest
rates
low,
while
maintaining
a
2%
average
inflation
target.
During
the
12-month
period,
municipal
bonds
delivered
positive
total
returns
as
investors
were
attracted
to
tax-free
income
in
a
declining
interest-rate
environment.
Factors
contributing
to
this
positive
investment
environment
for
municipals
included
relatively
low
inflation,
interest-rate
declines
and
actions
by
the
Federal
Reserve
to
support
the
municipal
bond
market.
Franklin
California
Tax-Free
Income
Fund’s
annual
report
includes
more
detail
about
municipal
bond
market
conditions
and
a
discussion
from
the
portfolio
managers.
In
addition,
on
our
website,
franklintempleton.com
,
you
can
find
updated
commentary
by
our
municipal
bond
experts.
Municipal
bonds
provide
tax-free
income
and
diversification
from
equities.
Despite
periods
of
volatility,
municipal
bonds
historically
have
had
a
solid
long-term
record
of
performance,
driven
mostly
by
their
compounding
tax-free
income
component.
As
you
know,
all
securities
markets
fluctuate,
as
do
mutual
fund
share
prices.
As
always,
we
recommend
investors
consult
their
financial
advisors
to
help
them
make
the
best
decisions
for
the
long
term.
In
a
constantly
changing
market
environment,
we
remain
committed
to
our
disciplined
strategy
as
we
manage
the
Fund,
keeping
in
mind
the
trust
you
have
placed
in
us.
We
appreciate
your
confidence
in
us
and
encourage
you
to
contact
us
or
your
financial
advisor
when
you
have
questions
about
your
Franklin
tax-free
investment.
Sincerely,
Rupert
H.
Johnson,
Jr.
Chairman
Franklin
California
Tax-Free
Income
Fund
Ben
Barber
Senior
Vice
President
Director
of
Municipal
Bonds
This
letter
reflects
our
analysis
and
opinions
as
of
March
31,
2021,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
franklintempleton.com
Annual
Report
2
Contents
Annual
Report
Franklin
California
Tax-Free
Income
Fund
3
Performance
Summary
6
Your
Fund’s
Expenses
9
Financial
Highlights
and
Statement
of
Investments
10
Financial
Statements
34
Notes
to
Financial
Statements
38
Report
of
Independent
Registered
Public
Accounting
Firm
46
Tax
Information
47
Board
Members
and
Officers
48
Shareholder
Information
53
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Annual
Report
ANNUAL
REPORT
Franklin
California
Tax-Free
Income
Fund
This
annual
report
for
Franklin
California
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
March
31,
2021
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
income
taxes,
including
alternative
minimum
tax,
and
exempt
from
California
personal
income
taxes
for
California
residents
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
investment-grade
municipal
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
increased
from
$7.50
on
March
31,
2020,
to
$7.71
on
March
31,
2021.
The
Fund’s
Class
A
shares
paid
dividends
totaling
21.1649
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
6
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
2.73%,
based
on
an
annualization
of
March’s
1.8234
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$8.01
on
March
31,
2021.
An
investor
in
the
2021
maximum
combined
effective
federal
and
California
personal
income
tax
bracket
of
53.10%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
5.82%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Municipal
Bond
Market
Overview
During
the
12
months
ended
March
31,
2021,
the
novel
coronavirus
(COVID-19)
pandemic
had
a
severe
economic
impact
across
the
globe
and
in
the
U.S.
As
whole
states
enacted
strong
social
distancing
protocols
(including,
in
some
cases,
stay-at-home
orders),
there
were
record
numbers
of
jobs
lost
and
a
strong
contraction
of
gross
domestic
product
(GDP)
in
both
the
first
and
second
quarters
of
2020.
After
seeing
large
disruptions
in
March
2020,
fixed
income
market
sectors—including
municipal
(muni)
bonds—began
the
slow
process
of
recovery
following
swift
policy
responses
from
both
monetary
and
fiscal
authorities.
The
U.S.
Federal
Reserve
set
up
a
number
of
new
emergency
facilities
to
restore
investor
confidence
in
the
market.
Included
in
these
measures
were
programs
to
purchase
muni
bonds
in
the
secondary
market
and
to
provide
direct
loans
to
muni
bond
issuers.
Although
these
programs
were
ultimately
thinly
subscribed,
they
provided
a
backstop
to
the
muni
bond
market.
The
U.S.
federal
government
also
undertook
a
number
of
fiscal
spending
packages
in
2020—$2.9
trillion
in
April
and
an
additional
$900
billion
in
December—to
provide
much-needed
resources
to
individuals
and
businesses
in
an
attempt
to
provide
bridge
funding
and
lessen
the
potential
for
scarring
in
the
overall
economy.
Credit
Quality
Composition
*
3/31/21
Ratings
%
of
Total
Investments
AAA
6.88%
AA
51.62%
A
24.02%
BBB
2.45%
Below
Investment
Grade
0.87%
Refunded
12.04%
Not
Rated
0.89%
Cash
&
Cash
Equivalents
1.23%
*
Ratings
shown
are
assigned
by
one
or
more
Nationally
Recognized
Statistical
Rating
Organizations
(NRSRO),
such
as
Standard
&
Poor's,
Moody's
and
Fitch.
When
ratings
from
multiple
agencies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO's
opinion
of
an
issuer's
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Refunded
category
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-
quality
securities.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
The
Not
Applicable
category
consists
of
third-party
ETFs
and
securities
that
only
have
a
short-term
rating
and
are
not
cash
equivalents.
Cash
includes
equivalents,
which
may
be
rated.
1.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
15
.
Franklin
California
Tax-Free
Income
Fund
4
franklintempleton.com
Annual
Report
Through
the
summer
of
2020,
infection
rates
fell
across
the
U.S.,
allowing
some
states
to
begin
the
process
of
reopening
parts
of
their
economies.
However,
starting
in
the
fall,
new
cases
and
hospitalizations
increased
to
all-time
highs
as
the
virus
spread
to
areas
in
the
U.S.
that
had
not
seen
large
numbers
of
infections,
causing
some
states
to
slow
or
abandon
their
reopening
plans.
This
was
tempered
by
the
emergency
approval
of
COVID-19
vaccines
from
multiple
pharmaceutical
manufacturers
by
the
U.S.
Food
and
Drug
Administration
in
December
2020
with
plans
to
provide
mass
inoculations
in
the
first
half
of
2021.
As
the
vaccination
program
progressed
during
the
first
quarter
of
2021,
case
rates
and
hospitalizations
dropped
significantly,
allowing
the
resumption
of
the
reopening
process
including
a
return
to
in-person
schooling.
Valuations
in
the
muni
bond
market
improved
starting
in
April
2020
due
to
strong
technical
conditions.
After
seeing
record
outflows
in
March
and
April
of
2020,
funds
flowed
back
into
muni
bond
retail
vehicles,
creating
significant
demand
for
bonds.
These
flows
outstripped
new
issuance
of
tax-exempt
bonds
as
many
issuers
turned
to
the
taxable
muni
bond
market
for
refundings
and
new
issuance.
Ratios
of
muni
bond
yields
versus
duration-matched
U.S.
Treasuries
(USTs)
improved
from
their
all-time
highs
seen
in
March
2020
throughout
the
remainder
of
2020
and
into
2021.
Although
these
ratios
moved
higher
in
February
2021
as
UST
yields
rose
sharply,
they
more
than
recovered
in
March
2021,
moving
to
all-time
bests
by
the
end
of
the
month.
Starting
in
February
2021,
UST
yields
rose
sharply,
which
put
pressure
on
muni
bond
absolute
returns
given
the
longer-duration
profile
of
the
sector.
State
and
local
muni
bond
issuers
projected
severe
budget
deficits
for
2020
and
going
forward
as
they
anticipated
tax
receipts
and
usage
fees
falling
and
outlays
for
social
programs
such
as
health
care
and
unemployment
benefits
strongly
rising.
By
the
end
of
2020,
many
of
these
deficit
projection
fears
were
unfounded
as
consumer
spending
recovered
more
quickly
than
anticipated,
leading
to
higher
sales
tax
collections.
A
strong
U.S.
housing
market
also
provided
additional
support.
In
March
2021,
the
U.S.
federal
government
passed
a
$1.9
trillion
additional
fiscal
spending
bill,
providing
large
one-time
cash
payments
to
individuals
and
continuation
of
enhanced
unemployment
benefits.
Included
in
this
package
was
$350
billion
worth
of
grants
to
state
and
local
governments
intended
to
further
support
budgets
and
improve
the
credit
profile
of
the
muni
sector
as
a
whole.
The
Investment
Company
Institute
(ICI)
reported
net
inflows
of
approximately
$5
billion
into
muni
bond
retail
vehicles
in
March
2021.
For
the
12-month
period,
muni
bond
retail
vehicles
had
approximately
$85
billion
of
net
inflows,
according
to
the
ICI.
For
the
12-month
period,
U.S.
fixed
income
sectors
broadly
underperformed
relative
to
equities,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
which
posted
a
+56.35%
total
return
for
the
period.
1
Investment-grade
muni
bonds,
as
measured
by
the
Bloomberg
Barclays
Municipal
Bond
Index,
posted
a
+5.51%
total
return,
while
USTs,
as
measured
by
the
Bloomberg
Barclays
U.S.
Treasury
Index,
posted
a
-4.43%
total
return,
and
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
Barclays
U.S.
Corporate
Bond
Index,
posted
a
+8.73%
total
return.
3
State
Update
During
the
12-month
period,
California’s
large,
diverse
economy,
which
was
strong
before
the
pandemic,
contracted
due
to
the
impact
of
COVID-19.
California’s
unemployment
rate
began
the
period
at
5.5%
and
ended
at
8.3%,
compared
with
the
6.0%
national
rate.
4
The
state’s
enacted
FY
2020
budget
increased
spending
while
maintaining
strong
reserves,
but
revenues
declined
amid
the
pandemic
during
the
period’s
first
half.
By
period-end,
the
state
had
a
budget
surplus
resulting
from
spending
cuts,
overall
increased
tax
revenue
and
federal
government
aid.
Consequently,
the
governor’s
fiscal
2022
executive
budget
proposal
projected
slightly
increased
fiscal
2021
general
fund
revenue
above
fiscal
year
2020.
California’s
net
tax-supported
debt
was
$2,147
per
capita
and
3.2%
of
personal
income,
compared
Portfolio
Composition
3/31/21
%
of
Total
Investments
Transportation
24.02%
Local
13.56%
Refunded
12.04%
Utilities
10.37%
Health
Care
9.32%
Education
8.56%
Industrial
Dev.
Revenue
and
Pollution
Control
6.15%
State
General
Obligation
4.36%
Lease
4.04%
Special
Tax
3.45%
Housing
2.12%
Cash
&
Cash
Equivalents
1.23%
Other
Revenue
Bonds
0.78%
3.
Source:
Morningstar.
Treasuries,
if
held
to
maturity,
offer
a
fixed
rate
of
return
and
a
fixed
principal
value;
their
interest
payments
and
principal
are
guaranteed.
4.
Source:
Bureau
of
Labor
Statistics.
Franklin
California
Tax-Free
Income
Fund
5
franklintempleton.com
Annual
Report
with
the
$1,071
and
2.0%
national
medians,
respectively.
5
Independent
credit
rating
agency
Standard
&
Poor’s
(S&P)
affirmed
California’s
general
obligations
bonds’
AA-
rating
with
a
stable
outlook.
6
The
rating
reflected
S&P’s
view
of
the
state’s
strong
economy,
strong
reserves
and
liquidity
going
into
the
current
recession,
as
well
as
California’s
moderately
high
but
stable
debt
ratios.
S&P
noted
challenges,
including
projections
of
declining
reserves
as
one-time
revenues
recede,
high
housing
costs
and
social
services
spending,
difficult-to-forecast
revenues
and
minimal
prefunding
of
retiree
health
care
benefits.
Investment
Strategy
We
select
securities
that
we
believe
will
provide
the
best
balance
between
risk
and
return
within
the
Fund’s
range
of
allowable
investments
and
typically
use
a
buy-and-hold
strategy.
This
means
we
generally
hold
securities
in
the
Fund’s
portfolio
for
income
purposes,
rather
than
trading
securities
for
capital
gains,
although
we
may
sell
a
security
at
any
time
if
we
believe
it
could
help
the
Fund
meet
its
goal.
Manager’s
Discussion
Based
on
the
combination
of
our
value-oriented
philosophy
of
investing
primarily
for
income
and
a
positive-sloping
municipal
yield
curve,
we
favored
the
use
of
longer-term
bonds.
Consistent
with
our
strategy,
we
sought
to
purchase
bonds
that
ranged
from
10
to
30
years
in
maturity
with
good
call
features.
We
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-
free
income
for
shareholders.
Thank
you
for
your
continued
participation
in
Franklin
California
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
March
31,
2021,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
5.
Source:
Moody’s
Investors
Service,
State
government
–
U.S.:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
6.
This
does
not
indicate
S&P’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
March
31,
2021
Franklin
California
Tax-Free
Income
Fund
6
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
3/31/21
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
+5.66%
+1.70%
5-Year
+19.62%
+2.86%
10-Year
+71.50%
+5.14%
Advisor
1-Year
+5.94%
+5.94%
5-Year
+20.56%
+3.81%
10-Year
+73.83%
+5.68%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.73%
5.82%
1.42%
3.03%
Advisor
3.12%
6.65%
1.72%
3.67%
See
page
8
for
Performance
Summary
footnotes.
Franklin
California
Tax-Free
Income
Fund
Performance
Summary
7
franklintempleton.com
Annual
Report
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(4/1/11–3/31/21)
Advisor
Class
(4/1/11–3/31/21)
Franklin
California
Tax-Free
Income
Fund
Performance
Summary
8
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest
rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
The
price
of
debt
securities
generally
falls
as
inflation
increases,
and
debt
securities
that
pay
a
fixed
rather
than
variable
interest
rate
are
more
vulnerable
to
inflation
risk.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Puerto
Rico
municipal
bonds
have
been
impacted
by
recent
adverse
eco-
nomic
and
market
changes,
which
may
cause
the
Fund’s
share
price
to
decline.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
March
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
3/31/21.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/17/20
for
the
maximum
combined
effective
federal
and
California
personal
income
tax
rate
of
53.10%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
This
combined
rate
does
not
consider
the
impact
of
California’s
surcharge
on
taxable
income
in
excess
of
$1
million.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Barclays
Municipal
Bond
California
Exempt
Index
is
the
California
component
of
the
Bloomberg
Barclay
Municipal
Bond
Index,
a
mar-
ket
value-weighted
index
engineered
for
the
long-term
tax-exempt
bond
market.
To
be
included
in
the
index,
bonds
must
be
fixed
rate,
have
at
least
one
year
to
final
maturity
and
be
rated
investment
grade
(Baa3/BBB-
or
higher)
by
at
least
two
of
the
following
agencies:
Moody’s,
S&P
and
Fitch.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(4/1/20–3/31/21)
Share
Class
Net
Investment
Income
A
$0.211649
A1
$0.223487
C
$0.180832
R6
$0.233303
Advisor
$0.230668
Total
Annual
Operating
Expenses
9
Share
Class
A
0.76%
Advisor
0.51%
Your
Fund’s
Expenses
Franklin
California
Tax-Free
Income
Fund
9
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
182/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
10/1/20
Ending
Account
Value
3/31/21
Expenses
Paid
During
Period
10/1/20–3/31/21
1,2
Ending
Account
Value
3/31/21
Expenses
Paid
During
Period
10/1/20–3/31/21
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,014.71
$3.80
$1,021.16
$3.81
0.76%
A1
$1,000
$1,015.52
$3.02
$1,021.93
$3.03
0.60%
C
$1,000
$1,014.07
$5.82
$1,019.16
$5.83
1.16%
R6
$1,000
$1,016.18
$2.36
$1,022.59
$2.37
0.47%
Advisor
$1,000
$1,016.03
$2.56
$1,022.39
$2.57
0.51%
Franklin
California
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Year
Ended
March
31,
Year
Ended
March
31,
2019
a
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
............................................
$7.50
$7.44
$7.27
Income
from
investment
operations
b
:
Net
investment
income
c
..................................................
0.22
0.22
0.14
Net
realized
and
unrealized
gains
(losses)
....................................
0.20
0.08
0.15
Total
from
investment
operations
.............................................
0.42
0.30
0.29
Less
distributions
from:
Net
investment
income
...................................................
(0.21)
(0.24)
(0.12)
Net
asset
value,
end
of
year
................................................
$7.71
$7.50
$7.44
Total
return
d
............................................................
5.66%
3.98%
4.11%
Ratios
to
average
net
assets
e
Expenses
f
..............................................................
0.75%
0.76%
0.76%
Net
investment
income
....................................................
2.79%
2.97%
3.38%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..............................................
$2,074,343
$1,395,165
$524,756
Portfolio
turnover
rate
.....................................................
14.41%
15.74%
14.12%
a
For
the
period
September
10,
2018
(effective
date)
to
March
31,
2019.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
California
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
11
a
Year
Ended
March
31,
2021
2020
2019
2018
2017
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$7.49
$7.43
$7.31
$7.38
$7.59
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.23
0.24
0.26
0.26
0.27
Net
realized
and
unrealized
gains
(losses)
...........
0.20
0.07
0.12
(0.06)
(0.22)
Total
from
investment
operations
....................
0.43
0.31
0.38
0.20
0.05
Less
distributions
from:
Net
investment
income
..........................
(0.22)
(0.25)
(0.26)
(0.27)
(0.26)
Net
asset
value,
end
of
year
.......................
$7.70
$7.49
$7.43
$7.31
$7.38
Total
return
c
...................................
5.83%
4.14%
5.34%
2.66%
0.68%
Ratios
to
average
net
assets
Expenses
.....................................
0.60%
d
0.61%
d
0.60%
d
0.59%
0.59%
Net
investment
income
...........................
2.97%
3.12%
3.54%
3.53%
3.54%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$11,084,478
$11,448,334
$11,824,206
$12,154,752
$12,425,129
Portfolio
turnover
rate
............................
14.41%
15.74%
14.12%
13.05%
19.37%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
California
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
Year
Ended
March
31,
2021
2020
2019
2018
2017
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$7.47
$7.41
$7.30
$7.36
$7.58
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.19
0.20
0.22
0.22
0.23
Net
realized
and
unrealized
gains
(losses)
...........
0.21
0.07
0.11
(0.06)
(0.23)
Total
from
investment
operations
....................
0.40
0.27
0.33
0.16
—
Less
distributions
from:
Net
investment
income
..........................
(0.18)
(0.21)
(0.22)
(0.22)
(0.22)
Net
asset
value,
end
of
year
.......................
$7.69
$7.47
$7.41
$7.30
$7.36
Total
return
c
...................................
5.40%
3.57%
4.63%
2.23%
(0.02)%
Ratios
to
average
net
assets
Expenses
.....................................
1.16%
d
1.16%
d
1.16%
d
1.15%
1.14%
Net
investment
income
...........................
2.42%
2.57%
2.98%
2.97%
2.99%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$1,018,197
$1,118,612
$1,124,954
$1,527,772
$1,659,070
Portfolio
turnover
rate
............................
14.41%
15.74%
14.12%
13.05%
19.37%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
California
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
13
a
Year
Ended
March
31,
Year
Ended
March
31,
2018
a
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$7.48
$7.42
$7.30
$7.46
Income
from
investment
operations
b
:
Net
investment
income
c
......................................
0.24
0.25
0.27
0.18
Net
realized
and
unrealized
gains
(losses)
........................
0.20
0.07
0.12
(0.18)
Total
from
investment
operations
.................................
0.44
0.32
0.39
—
Less
distributions
from:
Net
investment
income
.......................................
(0.23)
(0.26)
(0.27)
(0.16)
Net
asset
value,
end
of
year
....................................
$7.69
$7.48
$7.42
$7.30
Total
return
d
................................................
5.97%
4.28%
5.45%
(0.05)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
...................
0.47%
0.47%
0.47%
0.49%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.47%
f,g
0.46%
f
0.46%
f
0.48%
Net
investment
income
........................................
3.08%
3.27%
3.68%
3.64%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$281,038
$186,078
$103,760
$85,534
Portfolio
turnover
rate
.........................................
14.41%
15.74%
14.12%
13.05%
a
For
the
period
August
1,
2017
(effective
date)
to
March
31,
2018.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
California
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
Year
Ended
March
31,
2021
2020
2019
2018
2017
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$7.48
$7.42
$7.30
$7.36
$7.58
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.24
0.24
0.26
0.27
0.28
Net
realized
and
unrealized
gains
(losses)
...........
0.20
0.08
0.13
(0.06)
(0.23)
Total
from
investment
operations
....................
0.44
0.32
0.39
0.21
0.05
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.26)
(0.27)
(0.27)
(0.27)
Net
asset
value,
end
of
year
.......................
$7.69
$7.48
$7.42
$7.30
$7.36
Total
return
....................................
5.94%
4.24%
5.44%
2.89%
0.65%
Ratios
to
average
net
assets
Expenses
.....................................
0.51%
c
0.51%
c
0.51%
c
0.50%
0.49%
Net
investment
income
...........................
3.06%
3.22%
3.63%
3.62%
3.64%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$2,498,587
$1,888,402
$1,641,388
$1,572,721
$1,463,633
Portfolio
turnover
rate
............................
14.41
%
15.74%
14.12%
13.05%
19.37%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments,
March
31,
2021
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
15
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
97.7%
California
97.1%
ABAG
Finance
Authority
for
Nonprofit
Corp.
,
Eskaton
Properties,
Inc.
Obligated
Group
,
Revenue
,
2013
,
Refunding
,
5
%
,
11/15/35
................................
$
10,000,000
$
10,552,529
Alameda
Corridor
Transportation
Authority
,
Revenue,
Sub.
Lien,
2004
A,
Refunding,
AMBAC
Insured,
Zero
Cpn.,
10/01/29
....
20,000,000
17,365,604
Revenue,
Sub.
Lien,
2004
A,
Refunding,
AMBAC
Insured,
Zero
Cpn.,
10/01/30
....
41,665,000
35,254,444
Alameda
Unified
School
District
,
GO
,
2015A
,
5
%
,
8/01/39
.....................
18,000,000
21,097,631
Alhambra
City
Elementary
School
District
,
Alhambra
Unified
School
District
,
GO
,
2004
B
,
NATL
Insured
,
Zero
Cpn.,
9/01/27
...................................
3,035,000
2,791,447
Alisal
Union
School
District
,
GO,
2009B,
AGMC
Insured,
Zero
Cpn.,
8/01/32
...........................
3,355,000
2,681,270
GO,
2009B,
AGMC
Insured,
Zero
Cpn.,
8/01/33
...........................
3,610,000
2,799,162
GO,
2009B,
AGMC
Insured,
Zero
Cpn.,
2/01/34
...........................
3,345,000
2,548,612
Alvord
Unified
School
District
,
GO,
2011B,
AGMC
Insured,
Zero
Cpn.,
8/01/36
...........................
15,000,000
10,116,390
GO,
2011B,
AGMC
Insured,
Zero
Cpn.,
8/01/46
...........................
42,500,000
53,083,558
GO,
A,
Pre-Refunded,
AGMC
Insured,
5%,
8/01/42
........................
34,690,000
38,597,322
Anaheim
Public
Financing
Authority
,
City
of
Anaheim,
Revenue,
1997
C,
AGMC
Insured,
Zero
Cpn.,
9/01/24
.........
26,855,000
26,177,886
City
of
Anaheim,
Revenue,
1997
C,
AGMC
Insured,
Zero
Cpn.,
9/01/26
.........
29,430,000
27,759,771
City
of
Anaheim,
Revenue,
1997
C,
AGMC
Insured,
Zero
Cpn.,
9/01/27
.........
22,860,000
21,092,547
City
of
Anaheim,
Revenue,
1997
C,
AGMC
Insured,
Zero
Cpn.,
9/01/28
.........
14,425,000
12,968,824
City
of
Anaheim,
Revenue,
1997
C,
AGMC
Insured,
Zero
Cpn.,
9/01/29
.........
24,810,000
21,662,554
City
of
Anaheim,
Revenue,
1997
C,
AGMC
Insured,
Zero
Cpn.,
9/01/32
.........
13,665,000
10,921,731
City
of
Anaheim,
Revenue,
1997
C,
AGMC
Insured,
Zero
Cpn.,
9/01/33
.........
37,070,000
28,749,119
City
of
Anaheim,
Revenue,
1997
C,
AGMC
Insured,
Zero
Cpn.,
9/01/34
.........
24,970,000
18,785,695
City
of
Anaheim,
Revenue,
1997
C,
AGMC
Insured,
ETM,
Zero
Cpn.,
3/01/37
.....
15,080,000
11,268,883
Anaheim
Union
High
School
District
,
GO
,
2002
A
,
AGMC
Insured
,
Zero
Cpn.,
8/01/26
8,570,000
8,065,346
Antelope
Valley
Community
College
District
,
GO
,
2015
,
Pre-Refunded
,
5
%
,
8/01/39
..
11,750,000
13,823,735
Baldwin
Park
Unified
School
District
,
GO,
2013,
Pre-Refunded,
BAM
Insured,
5%,
8/01/43
.......................
5,000,000
5,556,986
GO,
2013,
Pre-Refunded,
BAM
Insured,
Zero
Cpn.,
8/01/48
..................
25,000,000
4,307,905
GO,
2013,
Pre-Refunded,
BAM
Insured,
Zero
Cpn.,
8/01/53
..................
60,000,000
7,034,856
Bay
Area
Toll
Authority
,
Revenue,
2013
S-4,
Pre-Refunded,
5%,
4/01/43
...........................
36,040,000
39,532,737
Revenue,
Pre-Refunded,
5.125%,
4/01/48
...............................
47,355,000
52,061,860
Revenue,
2013
S-4,
Pre-Refunded,
5.25%,
4/01/53
........................
33,000,000
36,361,961
Revenue,
2017
F-1,
Pre-Refunded,
5%,
4/01/56
...........................
60,000,000
75,266,142
Revenue,
2017
S-7,
Refunding,
4%,
4/01/42
.............................
84,260,000
96,307,503
Revenue,
2017
S-7,
Refunding,
4%,
4/01/47
.............................
72,000,000
81,714,622
Revenue,
2019
S-8,
Refunding,
5%,
4/01/56
.............................
25,000,000
30,287,585
a
Revenue,
2021
A,
Refunding,
Mandatory
Put,
2%,
4/01/28
...................
12,000,000
12,782,353
Beaumont
Public
Improvement
Authority
,
City
of
Beaumont
Wastewater
,
Revenue
,
2018
A
,
AGMC
Insured
,
5
%
,
9/01/49
...................................
10,000,000
12,027,850
Beaumont
Unified
School
District
,
GO
,
2011C
,
AGMC
Insured
,
Zero
Cpn.,
8/01/40
...
11,000,000
6,276,929
California
Affordable
Housing
Agency
,
Butte
County
Housing
Authority,
Revenue,
2020
A,
4%,
10/01/40
..............
1,580,000
1,795,466
Butte
County
Housing
Authority,
Revenue,
2020
A,
4%,
10/01/45
..............
1,930,000
2,163,987
Butte
County
Housing
Authority,
Revenue,
2020
A,
4%,
10/01/50
..............
1,855,000
2,068,197
California
Community
College
Financing
Authority
,
Revenue,
2001
A,
NATL
Insured,
5.125%,
4/01/31
.........................
880,000
899,554
Revenue,
2010A,
AGMC
Insured,
5%,
6/01/30
............................
770,000
772,522
Revenue,
2010A,
AGMC
Insured,
5.125%,
6/01/35
.........................
360,000
361,183
NCCD-Orange
Coast
Properties
LLC,
Revenue,
2018,
5.25%,
5/01/53
..........
8,150,000
8,663,535
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
b
California
Community
Housing
Agency
,
Brio
Apartments
&
Next
on
Lex
Apartments
,
Revenue,
Senior
Lien
,
144A,
2021
A1
,
4
%
,
2/01/56
........................
$
25,000,000
$
26,813,700
California
County
Tobacco
Securitization
Agency
,
Revenue,
2020
B-1,
Refunding,
5%,
6/01/49
.............................
1,000,000
1,210,069
Revenue,
Senior
Lien,
2020
A,
Refunding,
4%,
6/01/49
.....................
3,525,000
4,048,475
Alameda
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2002,
5.875%,
6/01/35
........................................................
7,355,000
7,364,757
Gold
Country
Settlement
Funding
Corp.,
Revenue,
2020
A,
Refunding,
4%,
6/01/40
1,120,000
1,338,539
Gold
Country
Settlement
Funding
Corp.,
Revenue,
2020
A,
Refunding,
4%,
6/01/49
1,000,000
1,159,562
Gold
Country
Settlement
Funding
Corp.,
Revenue,
2020
B-1,
Refunding,
4%,
6/01/49
225,000
250,362
Kern
County
Tobacco
Funding
Corp.,
Revenue,
2014,
Refunding,
5%,
6/01/34
....
10,295,000
10,769,603
Kern
County
Tobacco
Funding
Corp.,
Revenue,
2014,
Refunding,
5%,
6/01/40
....
17,650,000
18,693,650
Merced
County
Tobacco
Funding
Corp.,
Revenue,
Senior
Lien,
2020
A,
Refunding,
4%,
6/01/36
....................................................
470,000
568,993
Merced
County
Tobacco
Funding
Corp.,
Revenue,
Senior
Lien,
2020
A,
Refunding,
4%,
6/01/38
....................................................
530,000
637,011
Merced
County
Tobacco
Funding
Corp.,
Revenue,
Senior
Lien,
2020
A,
Refunding,
4%,
6/01/40
....................................................
625,000
746,341
Merced
County
Tobacco
Funding
Corp.,
Revenue,
Senior
Lien,
2020
A,
Refunding,
4%,
6/01/42
....................................................
100,000
118,566
Sonoma
County
Securitization
Corp.,
Revenue,
2020
A,
Refunding,
4%,
6/01/35
..
350,000
425,810
Sonoma
County
Securitization
Corp.,
Revenue,
2020
A,
Refunding,
4%,
6/01/36
..
600,000
726,375
Sonoma
County
Securitization
Corp.,
Revenue,
2020
A,
Refunding,
4%,
6/01/37
..
530,000
639,113
Sonoma
County
Securitization
Corp.,
Revenue,
2020
A,
Refunding,
4%,
6/01/38
..
790,000
949,507
Sonoma
County
Securitization
Corp.,
Revenue,
2020
A,
Refunding,
4%,
6/01/39
..
620,000
742,926
Sonoma
County
Securitization
Corp.,
Revenue,
2020
A,
Refunding,
4%,
6/01/40
..
830,000
991,953
Sonoma
County
Securitization
Corp.,
Revenue,
2020
A,
Refunding,
4%,
6/01/49
..
1,120,000
1,294,484
Sonoma
County
Securitization
Corp.,
Revenue,
2020
B
1,
Refunding,
5%,
6/01/49
.
1,200,000
1,464,650
Stanislaus
County
Tobacco
Funding
Corp.,
Revenue,
2002
A,
5.875%,
6/01/43
...
7,665,000
7,675,191
California
Educational
Facilities
Authority
,
Chapman
University,
Revenue,
2015,
5%,
4/01/45
.........................
10,000,000
11,402,354
c
Chapman
University,
Revenue,
2021
A,
Refunding,
5%,
4/01/27
...............
475,000
592,845
c
Chapman
University,
Revenue,
2021
A,
Refunding,
5%,
4/01/28
...............
395,000
504,547
c
Chapman
University,
Revenue,
2021
A,
Refunding,
5%,
4/01/29
...............
400,000
520,094
c
Chapman
University,
Revenue,
2021
A,
Refunding,
5%,
4/01/30
...............
425,000
561,276
c
Chapman
University,
Revenue,
2021
A,
Refunding,
5%,
4/01/31
...............
475,000
637,842
Leland
Stanford
Junior
University
(The),
Revenue,
U-1,
5.25%,
4/01/40
.........
24,960,000
37,090,560
Leland
Stanford
Junior
University
(The),
Revenue,
U-3,
5%,
6/01/43
............
56,950,000
84,000,595
Leland
Stanford
Junior
University
(The),
Revenue,
U-4,
5%,
6/01/43
............
24,205,000
35,702,097
Leland
Stanford
Junior
University
(The),
Revenue,
U-6,
5%,
5/01/45
............
90,580,000
135,025,097
Leland
Stanford
Junior
University
(The),
Revenue,
V-1,
5%,
5/01/49
............
20,000,000
30,656,040
Loma
Linda
University,
Revenue,
2017A,
Refunding,
5%,
4/01/47
..............
11,000,000
12,815,736
Loyola
Marymount
University,
Revenue,
2001A,
NATL
Insured,
Zero
Cpn.,
10/01/26
7,620,000
7,184,918
Loyola
Marymount
University,
Revenue,
2001A,
NATL
Insured,
Zero
Cpn.,
10/01/27
7,365,000
6,792,396
Loyola
Marymount
University,
Revenue,
2001A,
NATL
Insured,
Zero
Cpn.,
10/01/28
4,120,000
3,702,140
Loyola
Marymount
University,
Revenue,
2001A,
NATL
Insured,
Zero
Cpn.,
10/01/30
5,685,000
4,814,836
Loyola
Marymount
University,
Revenue,
2001A,
NATL
Insured,
Zero
Cpn.,
10/01/31
7,615,000
6,275,721
Loyola
Marymount
University,
Revenue,
2001A,
NATL
Insured,
Zero
Cpn.,
10/01/32
7,615,000
6,100,772
Santa
Clara
University,
Revenue,
1999,
AMBAC
Insured,
Zero
Cpn.,
9/01/26
.....
4,500,000
3,813,091
Santa
Clara
University,
Revenue,
2015,
Refunding,
5%,
4/01/45
...............
15,495,000
17,967,847
University
of
San
Francisco,
Revenue,
2018A,
5%,
10/01/48
.................
10,000,000
12,057,213
University
of
San
Francisco,
Revenue,
2018A,
5%,
10/01/53
.................
10,000,000
12,019,781
California
Enterprise
Development
Authority
,
Provident
Group-SDSU
Properties
LLC,
Revenue,
First
Tier,
2020
A,
5%,
8/01/40
..
650,000
795,258
Provident
Group-SDSU
Properties
LLC,
Revenue,
First
Tier,
2020
A,
5%,
8/01/45
..
650,000
784,361
Provident
Group-SDSU
Properties
LLC,
Revenue,
First
Tier,
2020
A,
5%,
8/01/50
..
650,000
781,366
Provident
Group-SDSU
Properties
LLC,
Revenue,
First
Tier,
2020
A,
5%,
8/01/55
..
1,000,000
1,192,947
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
17
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Enterprise
Development
Authority,
(continued)
Provident
Group-SDSU
Properties
LLC,
Revenue,
First
Tier,
2020
A,
5%,
8/01/57
..
$
500,000
$
594,201
California
Health
Facilities
Financing
Authority
,
Revenue,
1992
A,
California
Mortgage
Insured,
6.5%,
12/01/22
...............
270,000
271,239
Revenue,
2014A,
Pre-Refunded,
5%,
10/01/38
............................
3,890,000
4,519,649
Revenue,
2014A,
5%,
10/01/38
.......................................
5,110,000
5,857,734
Revenue,
2016B,
Pre-Refunded,
5%,
11/15/46
............................
36,705,000
45,488,404
Revenue,
2016B,
5%,
11/15/46
.......................................
53,265,000
62,133,990
California-Nevada
Methodist
Homes,
Revenue,
2015,
Refunding,
California
Mortgage
Insured,
5%,
7/01/35
..............................................
1,000,000
1,155,918
Casa
Milagro
LLC,
Revenue,
2011A,
California
Mortgage
Insured,
6.25%,
2/01/26
.
5,000,000
5,021,018
Children's
Hospital
Los
Angeles
Obligated
Group,
Revenue,
2017A,
Refunding,
5%,
8/15/42
........................................................
7,750,000
9,062,989
Children's
Hospital
Los
Angeles
Obligated
Group,
Revenue,
2017A,
Refunding,
5%,
8/15/47
........................................................
10,370,000
12,077,633
Children's
Hospital
of
Orange
County
Obligated
Group,
Revenue,
2011
A,
5.25%,
11/01/41
.......................................................
10,000,000
10,224,541
City
of
Hope
Obligated
Group,
Revenue,
2019,
5%,
11/15/49
.................
37,000,000
43,980,505
CommonSpirit
Health
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/38
.
8,950,000
10,378,569
CommonSpirit
Health
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/40
.
7,500,000
8,651,157
El
Camino
Hospital,
Revenue,
2017,
4.125%,
2/01/47
......................
11,000,000
12,016,319
El
Camino
Hospital,
Revenue,
2017,
5%,
2/01/47
..........................
12,500,000
14,585,474
Kaiser
Foundation
Hospitals,
Revenue,
2017A-2,
4%,
11/01/38
...............
25,000,000
28,830,078
Kaiser
Foundation
Hospitals,
Revenue,
2017A-2,
4%,
11/01/44
...............
385,000,000
438,546,416
Kaiser
Foundation
Hospitals,
Revenue,
2017A-2,
5%,
11/01/47
...............
30,000,000
44,477,805
Lucile
Salter
Packard
Children's
Hospital
at
Stanford
Obligated
Group,
Revenue,
2012A,
5%,
8/15/51
..............................................
39,455,000
41,464,786
Lucile
Salter
Packard
Children's
Hospital
at
Stanford
Obligated
Group,
Revenue,
2016B,
5%,
8/15/55
..............................................
12,960,000
14,981,975
Lucile
Salter
Packard
Children's
Hospital
at
Stanford
Obligated
Group,
Revenue,
2017A,
5%,
11/15/56
..............................................
22,000,000
26,024,227
Marshall
Medical
Center,
Revenue,
2020A,
Refunding,
California
Mortgage
Insured,
4%,
11/01/40
...................................................
3,750,000
4,364,156
Marshall
Medical
Center,
Revenue,
2020A,
Refunding,
California
Mortgage
Insured,
5%,
11/01/50
...................................................
25,065,000
30,884,158
On
Lok
Senior
Health
Services
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
8/01/40
........................................................
800,000
981,113
On
Lok
Senior
Health
Services
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
8/01/50
........................................................
1,625,000
1,959,092
On
Lok
Senior
Health
Services
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
8/01/55
........................................................
1,600,000
1,914,201
Rady
Children's
Hospital
Obligated
Group,
Revenue,
2011,
5.25%,
8/15/41
......
11,000,000
11,159,955
Sequoia
Living,
Inc.,
Revenue,
2015,
Refunding,
California
Mortgage
Insured,
5%,
7/01/34
........................................................
1,000,000
1,157,524
Sequoia
Living,
Inc.,
Revenue,
2015,
Refunding,
California
Mortgage
Insured,
5%,
7/01/39
........................................................
1,450,000
1,665,126
Sequoia
Living,
Inc.,
Revenue,
2015,
Refunding,
California
Mortgage
Insured,
5%,
7/01/44
........................................................
1,160,000
1,323,106
Stanford
Health
Care
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
8/15/50
.
26,900,000
31,365,462
Sutter
Health
Obligated
Group,
Revenue,
2013A,
Pre-Refunded,
5%,
8/15/52
.....
89,990,000
100,068,970
Sutter
Health
Obligated
Group,
Revenue,
2015A,
Pre-Refunded,
5%,
8/15/43
.....
20,000,000
23,896,720
Sutter
Health
Obligated
Group,
Revenue,
2017
A,
Refunding,
4%,
11/15/48
......
36,810,000
40,966,935
Sutter
Health
Obligated
Group,
Revenue,
2018
A,
4%,
11/15/42
...............
11,680,000
13,216,448
Sutter
Health
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/48
...............
34,500,000
40,907,982
California
Housing
Finance
,
Revenue,
2019-2,
A,
4%,
3/20/33
......................................
14,940,362
17,329,715
Revenue,
2021-1,
A,
3.5%,
11/20/35
...................................
5,000,000
5,709,136
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Housing
Finance,
(continued)
Lakeside
Drive
Senior
Housing
LP,
Revenue,
2019N,
FNMA
Insured,
2.35%,
12/01/35
.......................................................
$
9,803,454
$
10,090,614
Longshore
Cove
LP,
Revenue,
2020
E,
FNMA
Insured,
2.5%,
2/01/38
..........
9,857,793
10,325,406
California
Infrastructure
&
Economic
Development
Bank
,
Revenue,
2015A,
Pre-Refunded,
5%,
10/01/40
............................
4,015,000
4,829,878
Revenue,
2015A,
Pre-Refunded,
5%,
10/01/43
............................
1,900,000
2,285,621
Revenue,
2018,
5%,
10/01/48
........................................
10,000,000
12,384,751
Academy
of
Motion
Picture
Arts
and
Sciences
Obligated
Group,
Revenue,
2015A,
Refunding,
5%,
11/01/41
...........................................
8,000,000
8,893,295
Academy
of
Motion
Picture
Arts
and
Sciences
Obligated
Group,
Revenue,
2020B,
Refunding,
5%,
11/01/29
...........................................
5,000,000
6,495,387
California
State
Teachers'
Retirement
System,
Revenue,
2019,
5%,
8/01/44
......
8,000,000
9,850,954
California
State
Teachers'
Retirement
System,
Revenue,
2019,
5%,
8/01/49
......
30,300,000
37,083,000
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
B,
4%,
11/01/45
.......................................................
850,000
978,665
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
B,
4%,
11/01/50
.......................................................
860,000
987,769
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
B,
4%,
11/01/55
.......................................................
915,000
1,048,378
Los
Angeles
County
Museum
of
Natural
History
Foundation,
Revenue,
2020,
Refunding,
3%,
7/01/50
............................................
18,995,000
19,692,291
Los
Angeles
County
Museum
of
Natural
History
Foundation,
Revenue,
2020,
Refunding,
4%,
7/01/50
............................................
10,000,000
11,379,579
a
Museum
Associates,
Revenue,
2021
A,
Refunding,
Mandatory
Put,
1.2%,
6/01/28
.
15,000,000
14,797,196
State
of
California
Department
of
Transportation
Seismic
Surcharge,
Revenue,
First
Lien,
2003
A,
Pre-Refunded,
FGIC
Insured,
5%,
7/01/29
...................
50,985,000
64,684,899
State
of
California
Department
of
Transportation
Seismic
Surcharge,
Revenue,
First
Lien,
2003
A,
Pre-Refunded,
AMBAC
Insured,
5%,
7/01/33
.................
13,460,000
17,161,391
California
Municipal
Finance
Authority
,
4.25%,
1/15/35
...................................................
49,110,666
58,569,645
Revenue,
Senior
Lien,
2017A,
Refunding,
4%,
8/15/52
......................
27,350,000
29,559,481
1717
University
Associates
LLC,
Revenue,
2020
A,
4.5%,
6/01/52
.............
11,413,000
11,461,641
1717
University
Associates
LLC,
Revenue,
2020A-T,
5.25%,
6/01/52
...........
3,407,000
3,410,645
Channing
House,
Revenue,
2017B,
California
Mortgage
Insured,
5%,
5/15/47
....
10,000,000
11,831,086
CHF-Davis
I
LLC,
Revenue,
2018,
5%,
5/15/51
...........................
10,000,000
11,654,848
Community
Hospitals
of
Central
California
Obligated
Group,
Revenue,
2015A,
Refunding,
5%,
2/01/46
............................................
15,000,000
17,037,333
Community
Hospitals
of
Central
California
Obligated
Group,
Revenue,
2017A,
Refunding,
5%,
2/01/42
............................................
5,500,000
6,314,893
Community
Hospitals
of
Central
California
Obligated
Group,
Revenue,
2017A,
Refunding,
5%,
2/01/47
............................................
20,750,000
23,659,795
Eisenhower
Medical
Center,
Revenue,
2017A,
Refunding,
5%,
7/01/42
..........
5,100,000
5,933,545
Eisenhower
Medical
Center,
Revenue,
2017A,
Refunding,
5%,
7/01/47
..........
4,000,000
4,621,944
Inland
Christian
Home,
Inc.,
Revenue,
2020,
California
Mortgage
Insured,
4%,
12/01/49
.......................................................
2,670,000
3,062,506
Inland
Counties
Regional
Center,
Inc.,
Revenue,
2015,
Refunding,
5%,
6/15/45
...
23,300,000
26,801,039
LAX
Integrated
Express
Solutions
LLC,
Revenue,
Senior
Lien,
2018
A,
5%,
12/31/37
5,000,000
6,006,748
LAX
Integrated
Express
Solutions
LLC,
Revenue,
Senior
Lien,
2018
A,
5%,
12/31/43
11,800,000
13,945,434
LAX
Integrated
Express
Solutions
LLC,
Revenue,
Senior
Lien,
2018
A,
5%,
12/31/47
61,850,000
72,721,739
Northbay
Healthcare
Group
Obligated
Group,
Revenue,
2017
A,
5.25%,
11/01/41
..
5,500,000
6,270,257
Northbay
Healthcare
Group
Obligated
Group,
Revenue,
2017
A,
5%,
11/01/47
....
8,650,000
9,605,283
Northern
California
Retired
Officers
Community,
Revenue,
2019
A,
California
Mortgage
Insured,
5%,
1/01/43
......................................
10,000,000
12,021,882
Northern
California
Retired
Officers
Community,
Revenue,
2019
A,
California
Mortgage
Insured,
5%,
1/01/49
......................................
18,990,000
22,677,797
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
19
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Municipal
Finance
Authority,
(continued)
South
Central
Los
Angeles
Regional
Center
for
Developmentally
Disabled
Persons,
Revenue,
2013,
5.75%,
12/01/43
....................................
$
33,895,000
$
36,835,835
University
of
La
Verne,
Revenue,
2017A,
Refunding,
4%,
6/01/47
..............
10,500,000
11,756,778
California
Pollution
Control
Financing
Authority
,
b
San
Diego
County
Water
Authority,
Revenue,
144A,
2019,
Refunding,
5%,
7/01/39
.
7,250,000
8,721,357
b
San
Diego
County
Water
Authority,
Revenue,
144A,
2019,
Refunding,
5%,
11/21/45
1,905,000
2,261,726
San
Jose
Water
Co.,
Revenue,
2016,
4.75%,
11/01/46
......................
15,000,000
17,028,934
California
Public
School
District
Financing
Authority
,
Southern
Kern
Unified
School
District
,
Revenue
,
1996B
,
AGMC
Insured
,
ETM,
5.9
%
,
9/01/26
................
1,165,000
1,345,717
b
California
School
Finance
Authority
,
Kipp
SoCal
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2020
A
,
4
%
,
7/01/40
...................................
800,000
920,085
California
State
Public
Works
Board
,
Revenue,
2012
A,
5%,
4/01/31
........................................
48,070,000
50,291,007
Revenue,
2012
A,
5%,
4/01/32
........................................
17,885,000
18,711,351
Revenue,
2012
A,
5%,
4/01/37
........................................
29,000,000
30,333,983
Revenue,
2012G,
Refunding,
5%,
11/01/31
..............................
16,520,000
17,722,293
Revenue,
2013I,
5%,
11/01/38
........................................
40,000,000
44,575,416
c,d
Revenue,
2022
A,
Refunding,
5%,
8/01/32
...............................
6,500,000
8,209,774
c,d
Revenue,
2022
A,
Refunding,
5%,
8/01/36
...............................
7,500,000
9,344,344
Judicial
Council
of
California,
Revenue,
2011
D,
Refunding,
5%,
12/01/31
........
15,000,000
15,476,473
State
of
California
Department
of
Corrections
&
Rehabilitation,
Revenue,
2019C,
5%,
11/01/38
.......................................................
5,000,000
6,384,296
California
State
University
,
Revenue,
2014A,
Refunding,
5%,
11/01/39
...............................
23,000,000
26,346,355
Revenue,
2014A,
Refunding,
5%,
11/01/44
...............................
32,345,000
37,050,994
Revenue,
2015A,
Refunding,
5%,
11/01/43
...............................
11,000,000
12,976,412
Revenue,
2017A,
Refunding,
5%,
11/01/42
...............................
29,105,000
35,671,041
Revenue,
2017A,
Refunding,
5%,
11/01/47
...............................
63,000,000
77,216,794
Revenue,
2018
A,
Refunding,
5%,
11/01/39
..............................
19,920,000
25,032,952
Revenue,
2018
A,
Refunding,
5%,
11/01/43
..............................
16,870,000
21,073,179
Revenue,
2018
A,
Refunding,
5%,
11/01/50
..............................
17,385,000
21,535,815
Revenue,
2019
A,
5%,
11/01/44
.......................................
13,100,000
16,522,383
Revenue,
2019
A,
5%,
11/01/49
.......................................
90,295,000
113,130,921
Revenue,
2019
A,
5%,
11/01/51
.......................................
40,470,000
50,623,199
Revenue,
2020C,
4%,
11/01/45
.......................................
10,000,000
11,701,549
California
Statewide
Communities
Development
Authority
,
Revenue,
2004
A,
Pre-Refunded,
AGMC
Insured,
5.25%,
10/01/24
.............
225,000
225,815
Adventist
Health
System/West
Obligated
Group,
Revenue,
2015A,
Refunding,
5%,
3/01/35
........................................................
9,250,000
10,919,503
Adventist
Health
System/West
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
3/01/48
........................................................
67,585,000
80,523,655
CHF-Irvine
LLC,
Revenue,
2011,
Refunding,
5.125%,
5/15/31
................
8,000,000
8,036,995
CHF-Irvine
LLC,
Revenue,
2011,
Refunding,
5.375%,
5/15/38
................
8,500,000
8,538,271
Collis
P
and
Howard
Huntington
Memorial
Hospital
Obligated
Group,
Revenue,
2018,
5%,
7/01/48
....................................................
7,980,000
9,402,422
Community
Church
Retirement
Center,
Revenue,
2013,
California
Mortgage
Insured,
5.125%,
11/15/35
................................................
2,000,000
2,193,997
Community
Church
Retirement
Center,
Revenue,
2013,
California
Mortgage
Insured,
5.375%,
11/15/44
................................................
7,250,000
7,989,837
Henry
Mayo
Newhall
Hospital
Obligated
Group,
Revenue,
2014,
Pre-Refunded,
AGMC
Insured,
5.25%,
10/01/43
.....................................
3,000,000
3,488,844
a
Kaiser
Foundation
Hospitals,
Revenue,
2004
L,
Mandatory
Put,
5%,
11/01/29
.....
26,025,000
34,278,517
a
Kaiser
Foundation
Hospitals,
Revenue,
2004M,
Mandatory
Put,
5%,
11/01/29
.....
12,245,000
16,128,355
a
Kaiser
Foundation
Hospitals,
Revenue,
2009
C-2,
Mandatory
Put,
5%,
11/01/29
...
10,000,000
13,171,380
a
Kaiser
Foundation
Hospitals,
Revenue,
2009
C-3,
Mandatory
Put,
5%,
11/01/29
...
6,720,000
8,851,167
Kaiser
Foundation
Hospitals,
Revenue,
2012
A,
5%,
4/01/42
.................
88,945,000
92,855,111
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Statewide
Communities
Development
Authority,
(continued)
Poway
RHF
Housing,
Inc.,
Revenue,
2013A,
California
Mortgage
Insured,
5.25%,
11/15/35
.......................................................
$
2,000,000
$
2,200,391
Campbell
Union
School
District
,
GO
,
1996B
,
NATL
Insured
,
Zero
Cpn.,
8/01/21
.....
6,280,000
6,273,389
Carlsbad
Unified
School
District
,
GO,
2009B,
Refunding,
6%,
5/01/34
....................................
14,000,000
16,353,928
GO,
2011C,
Zero
Cpn.,
8/01/35
.......................................
33,000,000
39,619,539
Castro
Valley
Unified
School
District
,
COP
,
2011
,
AGMC
Insured
,
5
%
,
9/01/32
......
2,620,000
2,672,039
Centinela
Valley
Union
High
School
District
,
GO,
2004
A,
Refunding,
NATL
Insured,
5.5%,
8/01/33
......................
15,630,000
19,833,348
GO,
2012
B,
Refunding,
AGMC
Insured,
5%,
8/01/50
.......................
3,850,000
4,087,527
Cerritos
Public
Financing
Authority
,
Tax
Allocation
,
2002
A
,
AMBAC
Insured
,
5
%
,
11/01/22
........................................................
1,675,000
1,679,995
Chaffey
Joint
Union
High
School
District
,
GO
,
B
,
5
%
,
8/01/44
..................
27,500,000
31,735,374
Charter
Oak
Unified
School
District
,
GO
,
2015A
,
AGMC
Insured
,
5
%
,
8/01/40
......
5,000,000
5,855,816
Chico
Unified
School
District
,
GO
,
2012
A
,
5
%
,
8/01/43
.......................
8,000,000
8,813,263
Chino
Valley
Unified
School
District
,
GO,
2020
B,
4%,
8/01/45
............................................
3,000,000
3,516,141
GO,
2020
B,
3.375%,
8/01/50
.........................................
20,500,000
22,443,572
GO,
2020
B,
5%,
8/01/55
............................................
12,500,000
15,719,976
City
&
County
of
San
Francisco
,
Eastern
Park
Apartments
LP
,
Revenue
,
2019J
,
FNMA
Insured
,
2.55
%
,
7/01/39
.............................................
56,506,000
57,723,444
City
of
Fontana
,
Community
Facilities
District
No.
85,
Special
Tax,
2020,
4%,
9/01/45
...........
850,000
941,298
Community
Facilities
District
No.
85,
Special
Tax,
2020,
4%,
9/01/50
...........
900,000
993,209
Community
Facilities
District
No.
88,
Special
Tax,
2020,
4%,
9/01/45
...........
1,100,000
1,219,537
Community
Facilities
District
No.
88,
Special
Tax,
2020,
4%,
9/01/51
...........
1,545,000
1,704,978
Community
Facilities
District
No.
89,
Special
Tax,
2020,
4%,
9/01/40
...........
750,000
830,537
Community
Facilities
District
No.
89,
Special
Tax,
2020,
4%,
9/01/51
...........
1,500,000
1,640,340
City
of
Lincoln
,
Community
Facilities
District
No.
2006-1,
Special
Tax,
2021,
Refunding,
4%,
9/01/39
290,000
322,305
Community
Facilities
District
No.
2006-1,
Special
Tax,
2021,
Refunding,
4%,
9/01/40
160,000
177,383
Community
Facilities
District
No.
2006-1,
Special
Tax,
2021,
Refunding,
4%,
9/01/43
320,000
353,192
City
of
Long
Beach
,
Harbor,
Revenue,
2017C,
Refunding,
5%,
5/15/47
.........................
12,210,000
14,666,587
Harbor,
Revenue,
2019A,
5%,
5/15/49
..................................
18,205,000
22,604,836
City
of
Los
Angeles
,
Revenue,
1993-1,
Refunding,
NATL,
FHA
Insured,
6.5%,
7/01/22
..............
120,000
120,484
Department
of
Airports,
Revenue,
2015D,
5%,
5/15/41
......................
14,500,000
16,648,087
Department
of
Airports,
Revenue,
2016B,
5%,
5/15/41
......................
12,500,000
14,471,087
Department
of
Airports,
Revenue,
2016B,
5%,
5/15/46
......................
53,000,000
61,264,110
Department
of
Airports,
Revenue,
2017A,
5%,
5/15/47
......................
50,350,000
59,289,980
Department
of
Airports,
Revenue,
2018
A,
5%,
5/15/44
......................
60,000,000
71,593,530
Department
of
Airports,
Revenue,
2018
C,
5%,
5/15/37
.....................
9,550,000
11,503,976
Department
of
Airports,
Revenue,
2018
E,
Refunding,
5%,
5/15/43
.............
15,005,000
18,612,390
Department
of
Airports,
Revenue,
2018
E,
Refunding,
5%,
5/15/48
.............
33,145,000
40,808,992
Department
of
Airports,
Revenue,
2019
A,
Refunding,
5%,
5/15/49
.............
10,000,000
12,064,592
Department
of
Airports,
Revenue,
2019
E,
5%,
5/15/44
......................
22,135,000
27,179,642
Department
of
Airports,
Revenue,
2019
E,
5%,
5/15/49
......................
62,940,000
76,975,009
Department
of
Airports,
Revenue,
2019
F,
5%,
5/15/44
......................
2,950,000
3,581,435
Department
of
Airports,
Revenue,
2020
A,
Refunding,
5%,
5/15/35
.............
10,500,000
13,547,714
Department
of
Airports,
Revenue,
2020
A,
Refunding,
5%,
5/15/37
.............
8,000,000
10,236,709
Department
of
Airports,
Revenue,
2020
A,
Refunding,
5%,
5/15/38
.............
9,925,000
12,655,176
Department
of
Airports,
Revenue,
2020
A,
Refunding,
5%,
5/15/39
.............
10,265,000
13,052,502
Department
of
Airports,
Revenue,
2020
A,
Refunding,
5%,
5/15/40
.............
10,000,000
12,687,189
Department
of
Airports,
Revenue,
2021
A,
Refunding,
5%,
5/15/36
.............
3,665,000
4,730,626
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
21
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Los
Angeles,
(continued)
Department
of
Airports,
Revenue,
2021
A,
Refunding,
5%,
5/15/41
.............
$
4,835,000
$
6,126,374
Department
of
Airports,
Revenue,
2021
A,
Refunding,
5%,
5/15/46
.............
5,000,000
6,240,615
Department
of
Airports,
Revenue,
2021B,
Refunding,
5%,
5/15/45
.............
17,245,000
22,055,681
Department
of
Airports,
Revenue,
Senior
Lien,
2020C,
5%,
5/15/45
............
50,000,000
61,980,225
Department
of
Airports,
Revenue,
Senior
Lien,
2020C,
4%,
5/15/50
............
15,000,000
16,966,442
Wastewater
System,
Revenue,
2015-A,
5%,
6/01/44
.......................
9,000,000
10,488,659
Wastewater
System,
Revenue,
2015-C,
Refunding,
5%,
6/01/45
...............
24,690,000
28,414,059
Wastewater
System,
Revenue,
2018A,
5%,
6/01/48
........................
11,275,000
13,865,666
City
of
Ontario
,
Community
Facilities
District
No.
45,
Special
Tax,
2020,
4%,
9/01/43
...........
410,000
456,145
Community
Facilities
District
No.
45,
Special
Tax,
2020,
4%,
9/01/51
...........
1,565,000
1,727,049
City
of
Pasadena
,
Electric
,
Revenue
,
2016A
,
Refunding
,
4
%
,
6/01/46
............
22,625,000
24,954,560
City
of
Perris
,
Revenue
,
1988A
,
GNMA
Insured
,
ETM,
Zero
Cpn.,
6/01/23
.........
19,095,000
18,833,798
City
of
Porterville
,
Water
,
COP
,
2021
,
AGMC
Insured
,
4
%
,
8/15/50
...............
1,000,000
1,155,859
City
of
Riverside
,
Electric,
Revenue,
2013A,
Refunding,
5%,
10/01/43
........................
11,535,000
12,769,713
Sewer,
Revenue,
2015A,
Refunding,
5%,
8/01/40
..........................
25,000,000
29,279,080
City
of
Roseville
,
Electric
System
,
COP
,
2004
,
AGMC
Insured
,
5
%
,
2/01/34
........
5,000
5,016
City
of
Sacramento
,
Transient
Occupancy
Tax,
Revenue,
2018
A,
5%,
6/01/43
....................
6,035,000
7,142,627
Transient
Occupancy
Tax,
Revenue,
2018
A,
5%,
6/01/48
....................
19,830,000
23,315,065
Transient
Occupancy
Tax,
Revenue,
2018
C,
5%,
6/01/48
...................
9,415,000
11,035,789
Water,
Revenue,
2013,
Pre-Refunded,
5%,
9/01/38
........................
21,630,000
24,153,600
City
of
San
Francisco
,
Public
Utilities
Commission
Water,
Revenue,
2012
A,
Pre-Refunded,
5%,
11/01/43
.
71,735,000
75,524,825
Public
Utilities
Commission
Water,
Revenue,
2020A,
5%,
11/01/50
.............
35,000,000
44,613,985
City
of
San
Jose
,
Hotel
Tax,
Special
Tax,
2011,
6.5%,
5/01/36
..............................
10,000,000
10,025,410
Hotel
Tax,
Special
Tax,
2011,
6.5%,
5/01/42
..............................
10,000,000
10,023,673
City
of
Santa
Rosa
,
Wastewater,
Revenue,
2020
A,
5%,
9/01/34
..............................
6,700,000
8,808,815
Wastewater,
Revenue,
2020
A,
5%,
9/01/35
..............................
3,000,000
3,923,222
City
of
Upland
,
San
Antonio
Regional
Hospital
Obligated
Group
,
COP
,
Refunding
,
5
%
,
1/01/47
.........................................................
14,400,000
16,207,730
Coachella
Valley
Unified
School
District
,
GO,
C,
AGMC
Insured,
Zero
Cpn.,
8/01/36
...............................
8,000,000
5,579,175
GO,
C,
AGMC
Insured,
Zero
Cpn.,
8/01/37
...............................
8,000,000
5,392,542
GO,
C,
AGMC
Insured,
Zero
Cpn.,
8/01/40
...............................
7,500,000
4,553,781
GO,
C,
AGMC
Insured,
Zero
Cpn.,
8/01/43
...............................
10,000,000
5,245,070
Coalinga-Huron
Joint
Unified
School
District
,
GO
,
B
,
BAM
Insured
,
5
%
,
8/01/48
.....
13,210,000
16,236,772
Colton
Joint
Unified
School
District
,
GO
,
2010B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/42
.
16,365,000
8,778,760
Compton
Community
Redevelopment
Agency
,
Tax
Allocation,
Second
Lien,
2010B,
5.7%,
8/01/30
.........................
10,000,000
10,031,101
Tax
Allocation,
Second
Lien,
2010B,
6%,
8/01/35
..........................
11,160,000
11,193,035
Tax
Allocation,
Second
Lien,
2010B,
6%,
8/01/42
..........................
10,000,000
10,028,138
Contra
Costa
Community
College
District
,
GO,
2020
C,
4%,
8/01/33
............................................
1,500,000
1,859,640
GO,
2020
C,
4%,
8/01/34
............................................
1,375,000
1,697,008
Corona
Community
Facilities
District
,
Community
Facilities
District
No.
2018-1
Improvement
Area
No.
1,
Special
Tax,
2020,
4%,
9/01/45
....................................................
650,000
713,299
Community
Facilities
District
No.
2018-1
Improvement
Area
No.
1,
Special
Tax,
2020,
4%,
9/01/50
....................................................
1,500,000
1,640,370
Corona-Norco
Unified
School
District
,
GO,
1998
B,
AGMC
Insured,
Zero
Cpn.,
9/01/23
...........................
2,320,000
2,293,599
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Corona-Norco
Unified
School
District,
(continued)
GO,
1998
B,
AGMC
Insured,
Zero
Cpn.,
9/01/24
...........................
$
2,620,000
$
2,559,145
GO,
1998
B,
AGMC
Insured,
Zero
Cpn.,
3/01/25
...........................
1,400,000
1,356,789
GO,
1998
C,
NATL
Insured,
Zero
Cpn.,
9/01/25
...........................
4,655,000
4,471,197
GO,
1998
C,
NATL
Insured,
Zero
Cpn.,
9/01/26
...........................
6,080,000
5,738,029
GO,
A,
Pre-Refunded,
5%,
8/01/44
.....................................
20,000,000
23,909,740
County
of
Madera
,
Childrens
Hospital
Central
California
Obligated
Group,
COP,
1995,
NATL
Insured,
5.75%,
3/15/28
..................................................
27,500,000
27,589,760
Childrens
Hospital
Central
California
Obligated
Group,
COP,
1998,
NATL
Insured,
5%,
3/15/23
....................................................
3,650,000
3,678,210
County
of
Riverside
,
Revenue
,
1988
B
,
GNMA
Insured
,
ETM,
Zero
Cpn.,
6/01/23
...
26,160,000
25,885,480
County
of
Sacramento
,
Airport
System,
Revenue,
2016B,
Refunding,
5%,
7/01/41
...................
9,000,000
10,633,400
Airport
System,
Revenue,
Senior
Lien,
2016A,
Refunding,
5%,
7/01/41
..........
10,000,000
11,814,889
County
of
San
Bernardino
,
Revenue
,
1989
A
,
GNMA
Insured
,
ETM,
Zero
Cpn.,
5/01/22
4,445,000
4,266,415
b
CSCDA
Community
Improvement
Authority
,
Jefferson
Platinum
Triangle
Apartments
,
Revenue
,
144A,
2021A-1
,
2.875
%
,
8/01/41
..............................
3,125,000
3,028,687
Daly
City
Housing
Development
Finance
Agency
,
Franciscan
Park
LLC
,
Revenue
,
2007
A
,
Refunding
,
5
%
,
12/15/47
..........................................
17,870,000
17,915,066
Day
Creek
Square
Public
Facilities
,
Community
Facilities
District
No.
2018-1,
Special
Tax,
2020,
4%,
9/01/40
........
625,000
698,446
Community
Facilities
District
No.
2018-1,
Special
Tax,
2020,
4%,
9/01/45
........
700,000
776,069
Delano
Joint
Union
High
School
District
,
GO
,
2003
A
,
Refunding
,
NATL
Insured
,
5.15
%
,
2/01/32
.........................................................
8,520,000
10,686,629
Delano
Union
School
District
,
COP
,
1999
,
NATL
Insured
,
5.125
%
,
1/01/22
.........
365,000
375,693
East
Bay
Municipal
Utility
District
,
Water
System,
Revenue,
2014A,
Refunding,
5%,
6/01/35
....................
10,000,000
11,388,539
Water
System,
Revenue,
2014C,
5%,
6/01/44
............................
14,000,000
15,830,951
Water
System,
Revenue,
2015A,
Refunding,
5%,
6/01/36
....................
7,355,000
8,673,722
Water
System,
Revenue,
2015C,
4%,
6/01/45
............................
9,070,000
10,163,856
Water
System,
Revenue,
2019
A,
5%,
6/01/44
............................
4,000,000
5,054,844
Water
System,
Revenue,
2019
A,
5%,
6/01/49
............................
11,700,000
14,692,859
Eastern
Municipal
Water
District
Financing
Authority
,
Revenue
,
2015B
,
5
%
,
7/01/46
.
30,705,000
35,872,409
El
Dorado
Irrigation
District
,
COP,
2020
A,
4%,
3/01/45
...........................................
5,000,000
5,806,634
COP,
2020
A,
4%,
3/01/50
...........................................
15,330,000
17,701,364
Elk
Grove
Finance
Authority
,
Special
Tax
,
2015
,
Refunding
,
BAM
Insured
,
5
%
,
9/01/38
1,500,000
1,761,030
Fairfax
Elementary
School
District
,
GO
,
2010
,
AGMC
Insured
,
Zero
Cpn.,
11/01/48
..
10,380,000
4,056,162
FHLMC,
Multi-family
ML
Pass-Through
Certificates
,
Revenue,
2019-ML06,
ACA,
2.493%,
7/25/35
.............................
52,141,885
54,630,054
Revenue,
2021-ML08,
ACA,
1.896%,
11/25/37
............................
3,497,511
3,480,602
Folsom
Cordova
Unified
School
District
School
Facilities
Improvement
Dist
No.
5
,
GO
,
C
,
4
%
,
10/01/43
...................................................
17,500,000
20,208,291
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue,
2013
A,
Refunding,
AGMC
Insured,
5%,
1/15/42
...................
10,000,000
11,079,364
Revenue,
2013
A,
Pre-Refunded,
6%,
1/15/49
............................
305,000,000
353,422,532
Revenue,
2013
A,
Pre-Refunded,
6%,
1/15/53
............................
190,000,000
220,164,856
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn.,
1/15/31
..............
35,000,000
41,048,238
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn.,
1/15/32
..............
37,260,000
43,797,643
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn.,
1/15/37
..............
41,250,000
27,664,412
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn.,
1/15/38
..............
77,650,000
50,266,976
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn.,
1/15/39
..............
56,100,000
35,021,171
Revenue,
Refunding,
Zero
Cpn.,
1/15/42
................................
228,000,000
186,985,679
Revenue,
Senior
Lien,
1995
A,
ETM,
Zero
Cpn.,
1/01/23
....................
5,765,000
5,734,031
Revenue,
Senior
Lien,
1995
A,
ETM,
Zero
Cpn.,
1/01/24
....................
72,045,000
71,163,479
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
23
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Foothill-Eastern
Transportation
Corridor
Agency,
(continued)
Revenue,
Senior
Lien,
1995
A,
ETM,
Zero
Cpn.,
1/01/25
....................
$
20,660,000
$
20,172,267
Revenue,
Senior
Lien,
1995
A,
ETM,
Zero
Cpn.,
1/01/26
....................
23,475,000
22,614,076
Revenue,
Senior
Lien,
1995
A,
ETM,
Zero
Cpn.,
1/01/27
....................
15,000,000
14,173,519
Revenue,
Senior
Lien,
1995
A,
ETM,
Zero
Cpn.,
1/01/28
....................
2,000,000
1,852,511
Revenue,
Senior
Lien,
1995
A,
ETM,
Zero
Cpn.,
1/01/29
....................
35,310,000
31,965,433
Revenue,
Senior
Lien,
2021
A,
Refunding,
4%,
1/15/46
.....................
235,820,000
273,020,322
Fowler
Unified
School
District
,
GO,
2010C,
AGMC
Insured,
Zero
Cpn.,
8/01/41
...........................
3,095,000
1,831,485
GO,
2010C,
AGMC
Insured,
Zero
Cpn.,
8/01/42
...........................
3,005,000
1,715,776
Franklin-Mckinley
School
District
,
GO
,
C
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
8/01/44
.
5,000,000
5,563,177
Fresno
Unified
School
District
,
GO,
1999C,
Refunding,
NATL
Insured,
5.9%,
8/01/22
.......................
1,920,000
2,007,626
GO,
B,
Refunding,
Zero
Cpn.,
8/01/41
..................................
35,000,000
8,834,343
GO,
G,
Refunding,
Zero
Cpn.,
8/01/41
..................................
47,000,000
11,863,261
Fullerton
School
District
,
GO
,
2002
A
,
NATL
Insured
,
Zero
Cpn.,
8/01/23
..........
3,030,000
2,996,746
Fullerton
School
District
Financing
Authority
,
Special
Tax,
Senior
Lien
,
2013
A
,
Refunding
,
AGMC
Insured
,
5
%
,
9/01/31
.................................
2,500,000
2,765,608
Glendale
Community
College
District
,
GO,
2003
C,
NATL
Insured,
Zero
Cpn.,
8/01/28
...........................
15,000,000
12,032,934
GO,
2016B,
4%,
8/01/50
............................................
34,950,000
40,219,782
Glendora
Public
Finance
Authority
,
Glendora
Community
Redevelopment
Agency
,
Tax
Allocation
,
2003
A
,
NATL
Insured
,
5
%
,
9/01/24
............................
3,715,000
3,725,883
Golden
State
Tobacco
Securitization
Corp.
,
Revenue,
2015A,
Refunding,
5%,
6/01/35
...............................
25,000,000
29,181,655
Revenue,
2015A,
Refunding,
5%,
6/01/40
...............................
212,525,000
247,017,043
Revenue,
2015A,
Refunding,
5%,
6/01/45
...............................
308,395,000
357,828,251
Revenue,
2018A-1,
Refunding,
5%,
6/01/35
..............................
28,340,000
33,814,690
Grossmont
Union
High
School
District
,
GO
,
2004
,
AGMC
Insured
,
Zero
Cpn.,
8/01/24
5,110,000
5,017,754
Grossmont-Cuyamaca
Community
College
District
,
GO
,
2018
B
,
4
%
,
8/01/47
......
10,000,000
11,377,731
Hacienda
La
Puente
Unified
School
District
,
GO
,
2017A
,
4
%
,
8/01/47
............
655,000
738,649
Hartnell
Community
College
District
,
GO
,
2009C
,
Zero
Cpn.,
8/01/33
.............
20,000,000
26,809,414
Hawthorne
School
District
,
GO
,
2008-C
,
AGMC
Insured
,
Zero
Cpn.,
8/01/48
.......
37,665,000
14,769,584
Hayward
Unified
School
District
,
GO
,
2020
,
AGMC
Insured
,
4
%
,
8/01/45
..........
10,000,000
11,592,183
Huntington
Beach
City
School
District
,
GO
,
2003
A
,
NATL
Insured
,
Zero
Cpn.,
8/01/28
10,005,000
8,525,630
Huntington
Beach
Union
High
School
District
,
COP
,
2010
,
AGMC
Insured
,
5.25
%
,
9/01/39
.........................................................
2,000,000
2,004,935
b
Independent
Cities
Finance
Authority
,
City
of
Compton
Sales
Tax,
Revenue,
144A,
2021,
AGMC
Insured,
4%,
6/01/36
...
700,000
802,570
City
of
Compton
Sales
Tax,
Revenue,
144A,
2021,
AGMC
Insured,
4%,
6/01/41
...
900,000
1,015,078
City
of
Compton
Sales
Tax,
Revenue,
144A,
2021,
AGMC
Insured,
4%,
6/01/46
...
925,000
1,031,690
City
of
Compton
Sales
Tax,
Revenue,
144A,
2021,
AGMC
Insured,
4%,
6/01/51
...
1,250,000
1,389,846
Irvine
Unified
School
District
,
Special
Tax,
2020
A,
4%,
9/01/40
......................................
2,960,000
3,426,135
Special
Tax,
2020
A,
4%,
9/01/44
......................................
6,250,000
7,152,766
Special
Tax,
2020
A,
BAM
Insured,
4%,
9/01/50
...........................
8,000,000
9,296,283
Special
Tax,
2020
A,
BAM
Insured,
4%,
9/01/54
...........................
12,285,000
14,229,783
Community
Facilities
District
No.
01-1,
Special
Tax,
2015,
Refunding,
BAM
Insured,
5%,
9/01/38
....................................................
7,000,000
7,939,215
Community
Facilities
District
No.
09-1,
Special
Tax,
2017
D,
5%,
3/01/57
........
10,000,000
11,651,797
Jefferson
Union
High
School
District
,
GO,
2000A,
Refunding,
NATL
Insured,
6.45%,
8/01/25
......................
2,605,000
2,963,811
GO,
2000A,
Refunding,
NATL
Insured,
6.45%,
8/01/29
......................
3,075,000
4,010,578
Jurupa
Community
Services
District
,
Community
Facilities
District
No.
52,
Special
Tax,
2021A,
4%,
9/01/39
..........
135,000
150,895
Community
Facilities
District
No.
52,
Special
Tax,
2021A,
4%,
9/01/40
..........
140,000
156,096
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Jurupa
Community
Services
District,
(continued)
Community
Facilities
District
No.
52,
Special
Tax,
2021A,
4%,
9/01/50
..........
$
1,000,000
$
1,103,566
Jurupa
Public
Financing
Authority
,
Special
Tax,
2013
A,
AGMC
Insured,
5.125%,
9/01/37
......................
4,000,000
4,424,060
Special
Tax,
2013
A,
AGMC
Insured,
5.25%,
9/01/42
.......................
3,250,000
3,609,689
Jurupa
Unified
School
District
,
GO
,
2015A
,
5
%
,
8/01/39
......................
10,165,000
11,904,874
La
Mirada
Redevelopment
Agency
Successor
Agency
,
Tax
Allocation
,
2010A
,
Refunding
,
AGMC
Insured
,
5
%
,
8/15/28
.................................
1,855,000
1,860,468
La
Palma
Community
Development
Commission
,
Tax
Allocation
,
1993
,
Refunding
,
6.1
%
,
6/01/22
....................................................
145,000
145,733
Lakeside
Union
School
District
,
GO
,
2010B
,
Zero
Cpn.,
8/01/45
.................
11,540,000
5,801,549
Lammersville
Joint
Unified
School
District
,
GO
,
2016A
,
4
%
,
8/01/46
.............
41,340,000
45,898,868
Lancaster
School
District
,
GO,
1999,
NATL
Insured,
Zero
Cpn.,
8/01/25
.............................
5,495,000
5,243,132
GO,
1999,
NATL
Insured,
Zero
Cpn.,
7/01/26
.............................
5,965,000
5,592,863
Lawndale
Redevelopment
Agency
,
Tax
Allocation,
2009,
AGMC
Insured,
5.5%,
8/01/39
........................
10,280,000
10,313,766
Tax
Allocation,
2009,
AGMC
Insured,
5.5%,
8/01/44
........................
6,085,000
6,104,130
Lemon
Grove
School
District
,
GO
,
2010B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/50
......
20,990,000
8,594,406
Lodi
Unified
School
District
,
GO
,
2017
,
4
%
,
8/01/41
..........................
15,000,000
17,304,033
Long
Beach
Bond
Finance
Authority
,
Revenue,
2007A,
5.5%,
11/15/28
......................................
8,000,000
10,380,452
Revenue,
2007A,
5%,
11/15/29
.......................................
17,465,000
22,294,373
Revenue,
2007A,
5.5%,
11/15/30
......................................
5,000,000
6,679,390
Revenue,
2007A,
5%,
11/15/35
.......................................
69,855,000
94,679,350
Revenue,
2007A,
5.5%,
11/15/37
......................................
35,000,000
50,616,955
Los
Angeles
Community
College
District
,
GO
,
2016
,
Refunding
,
5
%
,
8/01/38
.......
10,000,000
12,089,071
Los
Angeles
County
Metropolitan
Transportation
Authority
,
Revenue,
2016A,
Refunding,
5%,
6/01/35
...............................
17,655,000
21,230,994
Revenue,
2016A,
Refunding,
5%,
6/01/37
...............................
10,970,000
13,136,951
Revenue,
2016A,
Refunding,
5%,
6/01/38
...............................
28,160,000
33,691,280
Revenue,
2016A,
Refunding,
5%,
6/01/39
...............................
10,000,000
11,947,591
Revenue,
2019
A,
5%,
7/01/44
........................................
32,030,000
39,819,846
Revenue,
2020
A,
Refunding,
5%,
6/01/35
...............................
21,325,000
28,307,748
Revenue,
2020
A,
Refunding,
5%,
6/01/36
...............................
30,950,000
40,935,658
Revenue,
2020
A,
Refunding,
5%,
6/01/37
...............................
6,500,000
8,566,381
Los
Angeles
County
Sanitation
Districts
Financing
Authority
,
Revenue
,
2016
A
,
Refunding
,
4
%
,
10/01/42
............................................
16,430,000
17,959,311
Los
Angeles
Department
of
Water
,
Revenue,
2012A,
5%,
7/01/43
........................................
81,095,000
85,545,575
Revenue,
2014A,
5%,
7/01/44
........................................
50,000,000
56,688,565
Revenue,
2016
A,
Refunding,
5%,
7/01/46
...............................
62,660,000
73,631,735
Revenue,
2017A,
Refunding,
5%,
7/01/44
...............................
72,060,000
87,653,244
Revenue,
2018
A,
5%,
7/01/43
........................................
13,805,000
16,985,136
Revenue,
2018
A,
5%,
7/01/48
........................................
22,375,000
27,358,129
Revenue,
2018
B,
Refunding,
5%,
7/01/48
...............................
10,000,000
12,383,526
Revenue,
2020
C,
Refunding,
5%,
7/01/37
...............................
6,035,000
7,906,731
Revenue,
2020
C,
Refunding,
5%,
7/01/38
...............................
20,350,000
26,581,848
Revenue,
2020
C,
Refunding,
5%,
7/01/39
...............................
14,535,000
18,932,073
Revenue,
2020A,
Refunding,
5%,
7/01/41
...............................
15,000,000
19,370,868
Revenue,
2020A,
Refunding,
5%,
7/01/50
...............................
14,875,000
18,864,222
Los
Angeles
Department
of
Water
&
Power
,
Revenue,
2020
B,
Refunding,
5%,
7/01/39
...............................
16,420,000
21,321,518
Revenue,
2020
B,
Refunding,
5%,
7/01/40
...............................
40,520,000
52,324,708
Revenue,
2020
B,
Refunding,
5%,
7/01/45
...............................
10,775,000
13,729,965
Power
System,
Revenue,
2014
D,
5%,
7/01/44
............................
51,940,000
58,888,081
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
25
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Los
Angeles
Department
of
Water
&
Power,
(continued)
Power
System,
Revenue,
2014
E,
5%,
7/01/44
............................
$
34,000,000
$
38,548,224
Power
System,
Revenue,
2014B,
5%,
7/01/43
............................
62,000,000
69,149,821
Power
System,
Revenue,
2015A,
Refunding,
5%,
7/01/35
...................
15,105,000
17,461,297
Power
System,
Revenue,
2015A,
Refunding,
5%,
7/01/36
...................
17,795,000
20,542,411
Power
System,
Revenue,
2016
A,
Refunding,
5%,
7/01/46
...................
15,000,000
17,535,896
Power
System,
Revenue,
2016B,
5%,
7/01/35
............................
11,995,000
14,241,533
Power
System,
Revenue,
2017A,
5%,
7/01/42
............................
7,710,000
9,376,267
Power
System,
Revenue,
2017A,
5%,
7/01/47
............................
16,000,000
19,461,861
Power
System,
Revenue,
2019
D,
Refunding,
5%,
7/01/44
...................
8,450,000
10,593,527
Power
System,
Revenue,
2019A,
5%,
7/01/45
............................
18,980,000
23,660,681
Power
System,
Revenue,
2019A,
5%,
7/01/49
............................
9,185,000
11,315,847
Los
Angeles
Unified
School
District
,
GO,
2020
A,
Refunding,
5%,
7/01/32
...................................
18,480,000
24,480,242
GO,
2020
A,
Refunding,
5%,
7/01/33
...................................
16,520,000
21,756,219
GO,
2020
C,
4%,
7/01/33
............................................
2,000,000
2,441,263
GO,
2020
C,
4%,
7/01/36
............................................
11,885,000
14,266,761
GO,
2020
C,
4%,
7/01/37
............................................
15,000,000
17,940,805
GO,
2020
C,
4%,
7/01/38
............................................
7,500,000
8,928,884
GO,
2020
RYQ,
4%,
7/01/36
.........................................
4,800,000
5,761,923
GO,
2020
RYQ,
4%,
7/01/44
.........................................
28,200,000
32,913,153
Los
Gatos-Saratoga
Joint
High
School
District
,
GO,
A,
4%,
8/01/39
................................................
10,635,000
11,643,340
GO,
A,
4%,
8/01/44
................................................
16,090,000
17,623,633
McFarland
Public
Financing
Authority
,
Revenue
,
2010A
,
AGMC
Insured
,
5
%
,
10/01/40
5,115,000
5,131,248
Mendocino-Lake
Community
College
District
,
GO
,
2011B
,
AGMC
Insured
,
5.125
%
,
8/01/41
.........................................................
7,500,000
7,609,084
Metropolitan
Water
District
of
Southern
California
,
Revenue,
2015
A,
5%,
7/01/40
........................................
10,000,000
11,682,921
Revenue,
2020
A,
5%,
10/01/45
.......................................
16,665,000
21,308,187
Revenue,
2020
C,
Refunding,
5%,
7/01/39
...............................
25,245,000
33,059,943
Revenue,
2020
C,
Refunding,
5%,
7/01/40
...............................
20,000,000
26,126,692
Revenue,
2021
A,
5%,
10/01/37
.......................................
2,180,000
2,916,988
Revenue,
2021
A,
5%,
10/01/38
.......................................
5,220,000
6,962,294
Revenue,
2021
A,
5%,
10/01/39
.......................................
6,150,000
8,179,420
Revenue,
2021
A,
5%,
10/01/40
.......................................
5,240,000
6,955,144
Revenue,
2021
A,
5%,
10/01/41
.......................................
4,360,000
5,768,264
Revenue,
2021
A,
5%,
10/01/46
.......................................
11,000,000
14,382,015
Midpeninsula
Regional
Open
Space
District
,
GO
,
2018
,
4
%
,
9/01/48
.............
11,220,000
12,853,689
Milpitas
Redevelopment
Agency
Successor
Agency
,
Tax
Allocation
,
1997
,
NATL
Insured
,
ETM,
5.5
%
,
1/15/24
.........................................
5,595,000
6,061,175
Miracosta
Community
College
District
,
GO
,
B
,
4
%
,
8/01/45
....................
25,405,000
29,823,107
Modesto
High
School
District
,
GO,
2002
A,
NATL
Insured,
Zero
Cpn.,
8/01/21
...........................
9,660,000
9,651,073
GO,
2002
A,
NATL
Insured,
Zero
Cpn.,
8/01/23
...........................
10,815,000
10,671,563
GO,
2002
A,
NATL
Insured,
Zero
Cpn.,
5/01/27
...........................
12,770,000
11,813,560
Monterey
Peninsula
Unified
School
District
,
GO
,
2016C
,
Refunding
,
5
%
,
8/01/41
....
11,190,000
13,348,044
Moorpark
Unified
School
District
,
GO
,
2009A
,
AGMC
Insured
,
Zero
Cpn.,
8/01/32
...
5,870,000
4,644,140
Moreno
Valley
Unified
School
District
,
GO,
2004
A,
AGMC
Insured,
ETM,
Zero
Cpn.,
8/01/27
......................
6,315,000
5,929,044
GO,
2004
A,
AGMC
Insured,
ETM,
Zero
Cpn.,
8/01/28
......................
6,625,000
6,091,449
GO,
A,
AGMC
Insured,
5%,
8/01/44
....................................
29,220,000
34,221,389
Mount
San
Antonio
Community
College
District
,
GO
,
2013
A
,
Zero
Cpn.,
8/01/43
....
55,000,000
60,538,660
Mountain
House
Public
Financing
Authority
,
Mountain
House
Community
Services
District,
Revenue,
2020
A,
BAM
Insured,
4%,
12/01/45
.......................................................
3,250,000
3,699,930
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Mountain
House
Public
Financing
Authority,
(continued)
Mountain
House
Community
Services
District,
Revenue,
2020
A,
BAM
Insured,
4%,
12/01/50
.......................................................
$
6,000,000
$
6,792,107
Mountain
House
Community
Services
District,
Revenue,
2020
B,
BAM
Insured,
4%,
12/01/40
.......................................................
2,750,000
3,159,840
Mountain
House
Community
Services
District,
Revenue,
2020
B,
BAM
Insured,
4%,
12/01/43
.......................................................
4,000,000
4,556,421
M-S-R
Energy
Authority
,
Revenue
,
2009B
,
6.5
%
,
11/01/39
.....................
25,000,000
39,966,223
M-S-R
Public
Power
Agency
,
Revenue
,
E
,
NATL
Insured
,
ETM,
6
%
,
7/01/22
.......
3,730,000
3,891,192
Needles
Public
Financing
Authority
,
Revenue
,
1992-A
,
7.5
%
,
8/15/22
............
290,000
290,777
Newport
Mesa
Unified
School
District
,
GO
,
2011
,
Zero
Cpn.,
8/01/42
.............
20,000,000
28,119,862
Norman
Y
Mineta
San
Jose
International
Airport
SJC
,
Revenue,
2017A,
Refunding,
5%,
3/01/41
...............................
10,000,000
11,790,055
Revenue,
2017A,
Refunding,
5%,
3/01/47
...............................
20,000,000
23,441,388
Revenue,
2017B,
Refunding,
5%,
3/01/47
...............................
10,000,000
11,892,904
c,d
Revenue,
2021
A,
Refunding,
5%,
3/01/29
...............................
1,505,000
1,915,545
c,d
Revenue,
2021
A,
Refunding,
5%,
3/01/30
...............................
1,550,000
1,995,582
c,d
Revenue,
2021
A,
Refunding,
5%,
3/01/31
...............................
1,600,000
2,086,237
c,d
Revenue,
2021
A,
Refunding,
5%,
3/01/32
...............................
2,000,000
2,591,369
c,d
Revenue,
2021
A,
Refunding,
5%,
3/01/33
...............................
2,000,000
2,583,700
c,d
Revenue,
2021
A,
Refunding,
BAM
Insured,
4%,
3/01/34
....................
2,220,000
2,652,947
c,d
Revenue,
2021
B,
Refunding,
5%,
3/01/29
...............................
500,000
646,800
c,d
Revenue,
2021
B,
Refunding,
5%,
3/01/30
...............................
600,000
787,048
c,d
Revenue,
2021
B,
Refunding,
5%,
3/01/31
...............................
1,000,000
1,329,691
c,d
Revenue,
2021
B,
Refunding,
5%,
3/01/32
...............................
2,000,000
2,642,570
c,d
Revenue,
2021
B,
Refunding,
5%,
3/01/33
...............................
1,400,000
1,841,297
c,d
Revenue,
2021
B,
Refunding,
BAM
Insured,
4%,
3/01/34
....................
1,750,000
2,133,745
Oceanside
Unified
School
District
,
GO,
2010B,
AGMC
Insured,
Zero
Cpn.,
8/01/38
...........................
10,590,000
7,162,856
GO,
2010B,
AGMC
Insured,
Zero
Cpn.,
8/01/39
...........................
7,860,000
5,145,083
GO,
2015,
Refunding,
5%,
8/01/48
.....................................
12,000,000
14,053,958
Ontario
Montclair
School
District
,
GO
,
2017A
,
5
%
,
8/01/46
....................
11,765,000
14,497,897
Orange
Community
Facilities
District
,
Special
Tax
,
2015
,
Refunding
,
AGMC
Insured
,
5
%
,
10/01/40
.....................................................
7,500,000
8,826,471
Orange
County
Sanitation
District
,
Revenue
,
2015A
,
Refunding
,
5
%
,
2/01/36
.......
8,350,000
9,586,693
Orange
County
Water
District
,
COP,
2003
B,
NATL
Insured,
ETM,
5%,
8/15/28
...........................
13,740,000
16,875,702
COP,
2003
B,
Pre-Refunded,
NATL
Insured,
5%,
8/15/34
....................
4,140,000
5,758,244
COP,
2003
B,
NATL
Insured,
ETM,
5%,
8/15/34
...........................
3,305,000
4,393,820
Oxnard
School
District
,
GO
,
C
,
Pre-Refunded
,
BAM
Insured
,
4
%
,
8/01/44
.........
10,755,000
12,065,641
Palomar
Community
College
District
,
GO,
2010B,
Zero
Cpn.,
8/01/39
.......................................
69,410,000
88,080,672
GO,
C,
Pre-Refunded,
5%,
8/01/44
....................................
35,120,000
41,985,504
Palomar
Health
,
GO,
2009A,
AGMC
Insured,
7%,
8/01/38
................................
36,000,000
50,952,532
GO,
2010A,
6.75%,
8/01/40
..........................................
60,000,000
81,989,586
Obligated
Group,
Revenue,
2017,
Refunding,
AGMC
Insured,
5%,
11/01/47
......
35,000,000
42,316,361
Paramount
Unified
School
District
,
GO,
2013,
Pre-Refunded,
BAM
Insured,
5%,
8/01/48
.......................
2,450,000
2,725,957
GO,
2013,
Pre-Refunded,
BAM
Insured,
Zero
Cpn.,
8/01/43
..................
32,000,000
8,271,971
GO,
2013,
Pre-Refunded,
BAM
Insured,
Zero
Cpn.,
8/01/48
..................
28,000,000
4,865,563
Patterson
Joint
Unified
School
District
,
GO,
2001
A,
NATL
Insured,
Zero
Cpn.,
8/01/22
...........................
1,900,000
1,885,700
GO,
2001
A,
NATL
Insured,
Zero
Cpn.,
8/01/23
...........................
1,985,000
1,950,981
GO,
2001
A,
NATL
Insured,
Zero
Cpn.,
8/01/24
...........................
2,075,000
2,008,750
GO,
2001
A,
NATL
Insured,
Zero
Cpn.,
8/01/25
...........................
2,170,000
2,064,316
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
27
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Patterson
Joint
Unified
School
District,
(continued)
GO,
2001
A,
NATL
Insured,
Zero
Cpn.,
8/01/26
...........................
$
2,265,000
$
2,112,540
Perris
Joint
Powers
Authority
,
Community
Facilities
District
No.
2018-1
,
Special
Tax
,
2020
,
4
%
,
9/01/50
.................................................
1,125,000
1,237,285
Perris
Union
High
School
District
,
COP,
2019,
Refunding,
BAM
Insured,
5%,
10/01/48
........................
10,000,000
12,204,530
GO,
2013
A,
AGMC
Insured,
5%,
9/01/42
................................
5,000,000
5,512,406
Pittsburg
Unified
School
District
,
GO
,
2016
,
Refunding
,
4
%
,
8/01/44
.............
11,000,000
12,328,711
Placentia-Yorba
Linda
Unified
School
District
,
GO,
2008
D,
Zero
Cpn.,
8/01/43
.......................................
27,955,000
16,062,871
GO,
2008
D,
Zero
Cpn.,
8/01/46
.......................................
89,200,000
44,139,023
GO,
2008
D,
Zero
Cpn.,
8/01/49
.......................................
85,000,000
37,941,875
Pomona
Unified
School
District
,
GO
,
C
,
AGMC
Insured
,
5.25
%
,
8/01/40
..........
16,000,000
16,268,022
Port
of
Los
Angeles
,
Revenue
,
2014B
,
Refunding
,
5
%
,
8/01/44
.................
10,300,000
11,599,010
Poway
Redevelopment
Agency
Successor
Agency
,
Tax
Allocation,
2015A,
Refunding,
5%,
12/15/31
...........................
10,180,000
13,819,478
Tax
Allocation,
2015A,
Refunding,
5%,
12/15/32
...........................
11,215,000
15,441,950
Tax
Allocation,
2015A,
Refunding,
5%,
6/15/33
............................
5,835,000
8,104,263
Poway
Unified
School
District
,
Community
Facilities
District
No.
16,
Special
Tax,
2020,
AGMC
Insured,
4%,
9/01/50
7,500,000
8,570,705
Facilities
Improvement
District
No.
2007-1,
GO,
B,
Zero
Cpn.,
8/01/46
..........
45,000,000
21,612,285
Regents
of
the
University
of
California
,
Medical
Center,
Revenue,
2013J,
5%,
5/15/48
............................
75,000,000
81,400,230
Medical
Center,
Revenue,
2016L,
Refunding,
5%,
5/15/47
...................
49,575,000
58,166,695
Rialto
Unified
School
District
,
GO
,
2011A
,
AGMC
Insured
,
Zero
Cpn.,
8/01/41
......
27,000,000
34,553,231
Rio
Hondo
Community
College
District
,
GO
,
2010C
,
Zero
Cpn.,
8/01/35
..........
10,000,000
7,311,338
Ripon
Unified
School
District
,
GO,
2013
A,
Refunding,
BAM
Insured,
5%,
8/01/42
........................
2,315,000
2,554,636
GO,
2013
A,
Pre-Refunded,
BAM
Insured,
5%,
8/01/42
.....................
705,000
784,408
River
Islands
Public
Financing
Authority
,
Lathrop
Irrigation
District
Electric,
Revenue,
2020,
AGMC
Insured,
4%,
9/01/45
...
2,250,000
2,565,318
Lathrop
Irrigation
District
Electric,
Revenue,
2020,
AGMC
Insured,
4%,
9/01/50
...
3,155,000
3,576,865
Riverside
County
Asset
Leasing
Corp.
,
County
of
Riverside,
Revenue,
1997A,
NATL
Insured,
Zero
Cpn.,
6/01/23
........
14,160,000
13,976,921
County
of
Riverside,
Revenue,
1997A,
NATL
Insured,
Zero
Cpn.,
6/01/24
........
13,005,000
12,667,607
Riverside
County
Transportation
Commission
,
Revenue,
2013
A,
Pre-Refunded,
5.25%,
6/01/39
..........................
11,000,000
12,199,257
Revenue,
Senior
Lien,
2013A,
5.75%,
6/01/48
............................
10,000,000
10,893,506
RNR
School
Financing
Authority
,
Community
Facilities
District
No.
92-1
,
Special
Tax
,
2015A
,
Refunding
,
BAM
Insured
,
5
%
,
9/01/36
............................
11,145,000
12,894,567
Rocklin
Unified
School
District
,
GO,
2003,
NATL
Insured,
Zero
Cpn.,
8/01/25
.............................
8,160,000
7,832,995
GO,
2003,
NATL
Insured,
Zero
Cpn.,
8/01/26
.............................
8,695,000
8,200,327
GO,
2003,
NATL
Insured,
Zero
Cpn.,
8/01/27
.............................
9,080,000
8,382,001
GO,
2003,
NATL
Insured,
Zero
Cpn.,
8/01/28
.............................
16,615,000
14,945,852
Community
Facilities
District
No.
3,
Special
Tax,
2019,
BAM
Insured,
4%,
9/15/49
..
11,825,000
13,320,400
Rohnert
Park
Community
Development
Commission
Successor
Agency
,
Tax
Allocation
,
2007R
,
NATL
Insured
,
ETM,
5
%
,
8/01/37
................................
1,380,000
1,441,610
Roseville
Natural
Gas
Financing
Authority
,
Revenue
,
2007
,
5
%
,
2/15/26
..........
5,000,000
5,964,703
Sacramento
Area
Flood
Control
Agency
,
Special
Assessment
,
2020
,
4
%
,
10/01/47
..
10,620,000
12,237,570
Sacramento
City
Unified
School
District
,
GO
,
2017E
,
4
%
,
5/01/47
...............
20,000,000
21,795,978
Sacramento
County
Sanitation
Districts
Financing
Authority
,
Revenue,
2014A,
Refunding,
5%,
12/01/44
..............................
25,000,000
28,269,555
Sacramento
Regional
County
Sanitation
District,
Revenue,
2020
A,
Refunding,
5%,
12/01/45
.......................................................
9,000,000
11,628,716
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Sacramento
County
Sanitation
Districts
Financing
Authority,
(continued)
Sacramento
Regional
County
Sanitation
District,
Revenue,
2020
A,
Refunding,
5%,
12/01/50
.......................................................
$
10,000,000
$
12,849,268
Sacramento
Regional
County
Sanitation
District,
Revenue,
2021,
Refunding,
5%,
12/01/29
.......................................................
4,100,000
5,432,030
Sacramento
Regional
County
Sanitation
District,
Revenue,
2021,
Refunding,
5%,
12/01/30
.......................................................
3,755,000
5,072,333
Sacramento
Regional
County
Sanitation
District,
Revenue,
2021,
Refunding,
5%,
12/01/31
.......................................................
11,700,000
16,117,448
Sacramento
Regional
County
Sanitation
District,
Revenue,
2021,
Refunding,
5%,
12/01/32
.......................................................
20,300,000
28,376,205
Sacramento
Regional
County
Sanitation
District,
Revenue,
2021,
Refunding,
5%,
12/01/33
.......................................................
11,200,000
15,346,873
Sacramento
Municipal
Utility
District
,
Revenue,
2019
G,
5%,
8/15/39
.......................................
3,135,000
4,000,550
Revenue,
2019
G,
5%,
8/15/41
.......................................
2,500,000
3,173,866
Electric
System,
Revenue,
2020
H,
5%,
8/15/50
...........................
51,700,000
66,033,567
San
Bernardino
Community
College
District
,
GO
,
2009B
,
Zero
Cpn.,
8/01/48
.......
66,390,000
30,033,356
San
Buenaventura
Public
Facilities
Financing
Authority
,
Revenue,
2014
C,
Pre-Refunded,
5%,
1/01/39
............................
8,500,000
9,597,443
Revenue,
Pre-Refunded,
5%,
1/01/44
..................................
19,395,000
21,899,108
San
Diego
Community
College
District
,
GO
,
2009B
,
6
%
,
8/01/33
................
26,880,000
35,199,156
San
Diego
County
Regional
Airport
Authority
,
Revenue,
2019
A,
Refunding,
5%,
7/01/44
...............................
9,000,000
11,042,310
Revenue,
2019
A,
Refunding,
5%,
7/01/49
...............................
5,000,000
6,096,815
Revenue,
2019
B,
Refunding,
4%,
7/01/44
...............................
3,000,000
3,395,474
Revenue,
2019
B,
Refunding,
5%,
7/01/49
...............................
5,000,000
6,012,919
Special
Facilities,
Revenue,
2014A,
5%,
7/01/44
..........................
5,645,000
6,303,914
San
Diego
County
Regional
Transportation
Commission
,
Revenue,
2014A,
Pre-Refunded,
5%,
4/01/44
.............................
54,915,000
62,695,192
Revenue,
2014A,
Pre-Refunded,
5%,
4/01/48
.............................
20,000,000
22,833,540
Revenue,
2016A,
5%,
4/01/48
........................................
25,000,000
29,756,875
San
Diego
County
Water
Authority
,
Revenue,
2021
A,
Refunding,
5%,
5/01/29
...............................
2,335,000
3,087,431
Revenue,
2021
A,
Refunding,
5%,
5/01/30
...............................
1,800,000
2,423,246
Revenue,
2021
A,
Refunding,
5%,
5/01/31
...............................
1,530,000
2,102,814
c
Revenue,
Sub.
Lien,
2021
S-1,
Refunding,
5%,
5/01/28
.....................
44,020,000
56,760,801
San
Diego
Public
Facilities
Financing
Authority
,
City
of
San
Diego
Water
Utility
,
Revenue
,
2020
A
,
4
%
,
8/01/45
........................................
4,500,000
5,345,854
San
Diego
Unified
School
District
,
GO,
1999
A,
NATL
Insured,
Zero
Cpn.,
7/01/21
...........................
12,160,000
12,156,019
GO,
1999
A,
NATL
Insured,
Zero
Cpn.,
7/01/22
...........................
8,440,000
8,419,299
GO,
1999
A,
NATL
Insured,
Zero
Cpn.,
7/01/23
...........................
11,120,000
11,041,862
GO,
2009-1,
Pre-Refunded,
6%,
7/01/33
................................
104,505,000
123,690,028
GO,
2010C,
Zero
Cpn.,
7/01/48
.......................................
29,840,000
31,943,034
GO,
2012
E,
Zero
Cpn.,
7/01/47
.......................................
74,270,000
68,935,082
GO,
2019
L,
4%,
7/01/49
............................................
30,000
34,690
GO,
F,
5%,
7/01/40
................................................
56,510,000
66,380,686
GO,
F,
5%,
7/01/45
................................................
34,370,000
40,216,701
GO,
G,
5%,
7/01/40
................................................
13,000,000
15,270,730
GO,
R-2,
Refunding,
Zero
Cpn.,
7/01/40
.................................
79,760,000
90,830,257
San
Francisco
Bay
Area
Rapid
Transit
District
,
GO
,
2020
C-1
,
4
%
,
8/01/45
........
35,295,000
41,388,565
San
Francisco
City
&
County
Airport
Comm-San
Francisco
International
Airport
,
Revenue,
2016B,
5%,
5/01/46
........................................
28,040,000
32,440,390
Revenue,
2019
A,
Refunding,
5%,
5/01/49
...............................
25,000,000
29,976,635
Revenue,
Second
Series,
2014B,
5%,
5/01/44
............................
31,000,000
34,910,467
Revenue,
Second
Series,
2017A,
5%,
5/01/42
............................
20,910,000
24,692,454
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
29
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
San
Francisco
City
&
County
Airport
Comm-San
Francisco
International
Airport,
(continued)
Revenue,
Second
Series,
2017A,
5%,
5/01/47
............................
$
49,090,000
$
57,571,083
Revenue,
Second
Series,
2017B,
5%,
5/01/47
............................
70,725,000
84,417,692
Revenue,
Second
Series,
2018,
5.25%,
5/01/48
...........................
120,000,000
144,910,116
Revenue,
Second
Series,
2018
D,
5%,
5/01/48
...........................
117,910,000
140,030,435
Revenue,
Second
Series,
2018E,
5%,
5/01/48
............................
44,650,000
53,545,352
Revenue,
Second
Series,
2019E,
5%,
5/01/50
............................
6,500,000
7,786,404
San
Francisco
City
&
County
Redevelopment
Agency
Successor
Agency
,
Tax
Allocation,
Third
Lien
,
2017B
,
AGMC
Insured
,
5
%
,
8/01/46
...................
10,000,000
12,058,877
San
Francisco
Community
College
District
,
GO
,
A
,
4
%
,
6/15/45
.................
7,000,000
8,177,756
San
Francisco
Municipal
Transportation
Agency
,
Revenue
,
2021
C
,
5
%
,
3/01/51
....
10,250,000
12,991,930
San
Gabriel
Unified
School
District
,
GO,
2002
A,
AGMC
Insured,
Zero
Cpn.,
8/01/26
...........................
3,530,000
3,327,411
GO,
2002
A,
AGMC
Insured,
Zero
Cpn.,
2/01/27
...........................
1,850,000
1,723,046
San
Joaquin
Hills
Transportation
Corridor
Agency
,
Revenue,
1997
A,
Refunding,
NATL
Insured,
Zero
Cpn.,
1/15/26
...............
13,155,000
12,114,246
Revenue,
Refunding,
Zero
Cpn.,
1/15/38
................................
245,085,000
338,867,401
Revenue,
1997
A,
Refunding,
Zero
Cpn.,
1/15/40
..........................
158,655,000
224,721,132
Revenue,
1997
A,
Refunding,
Zero
Cpn.,
1/15/41
..........................
141,024,000
201,186,728
Revenue,
1997
A,
Refunding,
Zero
Cpn.,
1/15/42
..........................
141,024,000
202,394,260
Revenue,
Senior
Lien,
1993,
ETM,
Zero
Cpn.,
1/01/25
......................
5,700,000
5,596,649
Revenue,
Senior
Lien,
1993,
ETM,
Zero
Cpn.,
1/01/28
......................
33,545,000
31,071,241
Revenue,
Senior
Lien,
1993,
ETM,
Zero
Cpn.,
1/01/29
......................
37,050,000
33,540,620
Revenue,
Senior
Lien,
2014A,
Refunding,
5%,
1/15/44
......................
125,000,000
139,528,375
Revenue,
Senior
Lien,
2014A,
Refunding,
5%,
1/15/50
......................
430,000,000
477,105,640
San
Jose
Unified
School
District
,
COP,
2002,
AGMC
Insured,
ETM,
Zero
Cpn.,
1/01/27
.......................
7,105,000
6,694,385
COP,
2002,
AGMC
Insured,
ETM,
Zero
Cpn.,
1/01/29
.......................
7,105,000
6,382,758
San
Juan
Unified
School
District
,
GO,
2003
B,
NATL
Insured,
Zero
Cpn.,
8/01/26
...........................
15,825,000
13,992,612
GO,
2003
B,
NATL
Insured,
Zero
Cpn.,
8/01/27
...........................
18,605,000
17,283,059
GO,
2003
B,
NATL
Insured,
Zero
Cpn.,
8/01/28
...........................
19,470,000
17,641,853
San
Luis
Obispo
County
Financing
Authority
,
Revenue
,
2015A
,
Refunding
,
BAM
Insured
,
5
%
,
9/01/37
...............................................
10,000,000
11,740,201
San
Marcos
Public
Financing
Authority
,
Revenue
,
1994
A
,
ETM,
6.25
%
,
9/02/22
....
15,000,000
16,284,524
San
Marino
Unified
School
District
,
GO
,
2000
A
,
NATL
Insured
,
Zero
Cpn.,
7/01/25
..
6,080,000
5,845,398
San
Mateo
Foster
City
Public
Financing
Authority
,
City
of
San
Mateo
Sewer
,
Revenue
,
2019
,
5
%
,
8/01/49
.................................................
29,000,000
36,450,799
San
Mateo
Union
High
School
District
,
COP,
2007,
Pre-Refunded,
AMBAC
Insured,
5%,
12/15/43
...................
11,535,000
13,465,005
GO,
2002
B,
NATL
Insured,
Zero
Cpn.,
9/01/22
...........................
5,000,000
4,985,545
San
Rafael
City
High
School
District
,
GO
,
2018
B
,
4
%
,
8/01/47
.................
17,060,000
19,535,592
Sanger
Public
Financing
Authority
,
Revenue,
2013,
AGMC
Insured,
5%,
6/15/35
.............................
2,360,000
2,584,392
Revenue,
2013,
AGMC
Insured,
5%,
6/15/43
.............................
6,155,000
6,734,553
Sanger
Unified
School
District
,
GO
,
A
,
BAM
Insured
,
4
%
,
8/01/41
...............
10,000,000
11,316,289
Santa
Ana
Unified
School
District
,
COP
,
1999
,
AGMC
Insured
,
Zero
Cpn.,
4/01/24
...
11,225,000
10,143,378
Santa
Clara
Valley
Water
District
,
Revenue,
2020
A,
Refunding,
5%,
6/01/45
...............................
5,000,000
6,341,155
Revenue,
2020
A,
Refunding,
5%,
6/01/50
...............................
5,000,000
6,315,811
Santa
Cruz
County
Redevelopment
Successor
Agency
,
Tax
Allocation
,
2015A
,
Refunding
,
AGMC
Insured
,
5
%
,
9/01/35
.................................
20,000,000
23,202,588
Santa
Maria
Joint
Union
High
School
District
,
GO
,
2014
,
4
%
,
8/01/37
............
14,230,000
15,358,687
Santa
Paula
Utility
Authority
,
Revenue,
2015A,
Pre-Refunded,
5%,
2/01/45
.............................
16,495,000
19,308,455
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Santa
Paula
Utility
Authority,
(continued)
Revenue,
2015A,
Pre-Refunded,
5%,
2/01/50
.............................
$
21,050,000
$
24,640,374
School
Facilities
Financing
Authority
,
Twin
Rivers
Unified
School
District
,
Revenue
,
A
,
AGMC
Insured
,
Zero
Cpn.,
8/01/42
....................................
49,000,000
25,980,197
Semitropic
Improvement
District
of
the
Semitropic
Water
Storage
District
,
Revenue,
Second
Lien
,
2015A
,
Refunding
,
AGMC
Insured
,
5
%
,
12/01/45
................
10,000,000
11,824,677
Sonoma
Community
Development
Agency
Successor
Agency
,
Tax
Allocation
,
2011
,
7.125
%
,
12/01/36
..................................................
10,775,000
11,156,137
Southern
California
Public
Power
Authority
,
Revenue
,
2007A
,
5
%
,
11/01/33
........
17,500,000
23,451,915
Southern
Mono
Health
Care
District
,
GO,
A,
NATL
Insured,
Zero
Cpn.,
8/01/28
................................
2,340,000
2,067,038
GO,
A,
NATL
Insured,
Zero
Cpn.,
8/01/29
................................
2,440,000
2,088,101
GO,
A,
NATL
Insured,
Zero
Cpn.,
8/01/30
................................
2,550,000
2,111,108
GO,
A,
NATL
Insured,
Zero
Cpn.,
8/01/31
................................
2,660,000
2,136,755
Southwestern
Community
College
District
,
GO
,
D
,
Pre-Refunded
,
5
%
,
8/01/44
.....
10,000,000
11,931,157
State
of
California
,
GO,
6%,
5/01/24
..................................................
2,565,000
2,651,445
GO,
NATL
Insured,
6%,
8/01/24
.......................................
990,000
1,008,788
GO,
5.625%,
9/01/24
...............................................
255,000
260,703
GO,
AMBAC
Insured,
5.9%,
3/01/25
....................................
140,000
143,287
GO,
Refunding,
5%,
11/01/28
.........................................
10,000,000
12,965,668
GO,
Refunding,
5%,
12/01/28
.........................................
24,000,000
31,170,434
GO,
5%,
11/01/29
.................................................
10,000,000
13,219,308
GO,
Refunding,
5%,
11/01/29
.........................................
17,000,000
22,472,824
GO,
Refunding,
5%,
12/01/29
.........................................
3,015,000
3,991,604
GO,
Refunding,
5%,
12/01/30
.........................................
4,000,000
5,381,625
GO,
Refunding,
5%,
4/01/31
.........................................
10,295,000
13,927,476
GO,
Refunding,
5%,
12/01/31
.........................................
1,500,000
2,055,555
GO,
Refunding,
5%,
4/01/32
.........................................
15,045,000
20,707,997
GO,
5%,
12/01/34
.................................................
23,255,000
30,859,629
GO,
Refunding,
5%,
3/01/35
.........................................
51,980,000
67,696,304
GO,
5%,
12/01/35
.................................................
9,745,000
12,888,236
GO,
Refunding,
4%,
3/01/36
.........................................
10,000,000
12,025,032
GO,
5%,
12/01/36
.................................................
16,560,000
21,817,470
GO,
5%,
10/01/39
.................................................
15,000,000
17,854,125
GO,
5%,
10/01/41
.................................................
15,250,000
15,603,931
GO,
5%,
4/01/43
..................................................
44,745,000
48,749,606
GO,
5%,
10/01/44
.................................................
25,000,000
28,760,918
GO,
5%,
8/01/45
..................................................
22,500,000
26,351,172
GO,
4%,
3/01/46
..................................................
6,750,000
7,900,151
GO,
5%,
8/01/46
..................................................
20,000,000
23,971,178
GO,
5%,
10/01/47
.................................................
81,000,000
96,022,422
GO,
5%,
4/01/49
..................................................
5,000,000
6,192,306
GO,
1992,
NATL
Insured,
6%,
10/01/21
.................................
35,000
36,014
GO,
1996,
Pre-Refunded,
FGIC
Insured,
5.375%,
6/01/26
...................
1,335,000
1,345,934
GO,
1997,
NATL,
FGIC
Insured,
5.625%,
10/01/26
.........................
5,005,000
5,139,949
GO,
2004,
5.125%,
4/01/24
..........................................
5,000
5,018
GO,
2004,
5.2%,
4/01/26
............................................
20,000
20,074
GO,
2007,
Refunding,
AGMC
Insured,
5.25%,
8/01/32
......................
55,140,000
76,709,252
GO,
2012,
5%,
4/01/42
.............................................
85,000,000
88,901,270
GO,
2017,
5%,
11/01/47
.............................................
10,000,000
12,194,861
State
of
California
Department
of
Water
Resources
,
Revenue,
BB,
Refunding,
5%,
12/01/32
.................................
17,110,000
23,228,079
Revenue,
BB,
Refunding,
5%,
12/01/33
.................................
21,785,000
29,445,314
Revenue,
BB,
Refunding,
5%,
12/01/35
.................................
3,100,000
4,166,173
Sulphur
Springs
Union
School
District
,
COP,
2010,
AGMC
Insured,
ETM,
6.5%,
12/01/37
..........................
1,725,000
1,912,220
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
31
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Sulphur
Springs
Union
School
District,
(continued)
COP,
2010,
AGMC
Insured,
6.5%,
12/01/37
..............................
$
11,390,000
$
14,255,731
Temple
City
Unified
School
District
,
GO
,
A
,
Pre-Refunded
,
5
%
,
8/01/43
...........
10,000,000
11,126,354
Tobacco
Securitization
Authority
of
Northern
California
,
Sacramento
County
Tobacco
Securitization
Corp.,
Revenue,
Senior
Lien,
2021A,
1,
Refunding,
5%,
6/01/29
............................................
1,500,000
1,946,232
Sacramento
County
Tobacco
Securitization
Corp.,
Revenue,
Senior
Lien,
2021A,
1,
Refunding,
5%,
6/01/31
............................................
1,290,000
1,709,779
Sacramento
County
Tobacco
Securitization
Corp.,
Revenue,
Senior
Lien,
2021A,
1,
Refunding,
5%,
6/01/33
............................................
1,520,000
1,990,520
Sacramento
County
Tobacco
Securitization
Corp.,
Revenue,
Senior
Lien,
2021A,
1,
Refunding,
4%,
6/01/35
............................................
1,020,000
1,231,721
Sacramento
County
Tobacco
Securitization
Corp.,
Revenue,
Senior
Lien,
2021A,
1,
Refunding,
4%,
6/01/49
............................................
5,500,000
6,346,499
Sacramento
County
Tobacco
Securitization
Corp.,
Revenue,
Senior
Lien,
2021
B,
2,
Refunding,
4%,
6/01/49
............................................
1,500,000
1,691,919
Transbay
Joint
Powers
Authority
,
Transbay
Redevelopment
Project
Tax
Increment
Re-Development
Project,
Tax
Allocation,
Senior
Lien,
2020
A,
5%,
10/01/45
...........................
10,410,000
12,743,944
Transbay
Redevelopment
Project
Tax
Increment
Re-Development
Project,
Tax
Allocation,
Senior
Lien,
2020
A,
5%,
10/01/49
...........................
7,985,000
9,733,030
Tulare
County
Board
of
Education
,
COP,
Pre-Refunded,
BAM
Insured,
5.375%,
5/01/33
........................
3,185,000
3,527,074
COP,
Pre-Refunded,
BAM
Insured,
5.5%,
5/01/38
.........................
8,305,000
9,218,434
COP,
Pre-Refunded,
BAM
Insured,
5.5%,
5/01/43
.........................
10,855,000
12,048,898
Turlock
Irrigation
District
,
Revenue,
2020,
Refunding,
5%,
1/01/37
.................................
2,090,000
2,701,597
Revenue,
2020,
Refunding,
5%,
1/01/38
.................................
940,000
1,211,415
Revenue,
2020,
Refunding,
5%,
1/01/39
.................................
2,250,000
2,891,314
Revenue,
2020,
Refunding,
5%,
1/01/41
.................................
3,500,000
4,468,358
Union
Elementary
School
District
,
GO,
1999-A,
NATL
Insured,
Zero
Cpn.,
9/01/24
...........................
2,000,000
1,958,193
GO,
2001B,
NATL
Insured,
Zero
Cpn.,
9/01/25
............................
5,500,000
5,310,715
GO,
2001B,
NATL
Insured,
Zero
Cpn.,
9/01/26
............................
5,850,000
5,556,712
University
of
California
,
Revenue,
2015
I,
Refunding,
5%,
5/15/40
................................
22,990,000
26,757,043
Revenue,
2015
I,
Refunding,
5%,
5/15/50
................................
25,420,000
29,585,212
Revenue,
2016AR,
Refunding,
5%,
5/15/41
..............................
13,760,000
16,391,239
Revenue,
2016K,
4%,
5/15/46
........................................
19,850,000
22,082,565
Revenue,
2017M,
5%,
5/15/37
........................................
15,410,000
18,959,504
Revenue,
2018
AZ,
Refunding,
5%,
5/15/48
..............................
72,325,000
89,068,628
Revenue,
2018
O,
Refunding,
5%,
5/15/39
...............................
14,400,000
17,952,232
Revenue,
2018
O,
Refunding,
5%,
5/15/43
...............................
30,120,000
37,226,151
Revenue,
2018
O,
Refunding,
5%,
5/15/48
...............................
20,000,000
24,554,550
Revenue,
2018
O,
Refunding,
5%,
5/15/58
...............................
10,000,000
12,209,577
Revenue,
2020
BE,
Refunding,
5%,
5/15/41
..............................
20,000,000
25,821,832
Revenue,
2020
BE,
Refunding,
5%,
5/15/42
..............................
26,250,000
33,790,759
Revenue,
2020
BE,
Refunding,
4%,
5/15/47
..............................
13,000,000
15,205,468
Revenue,
2020
BE,
Refunding,
4%,
5/15/50
..............................
13,000,000
15,120,437
Revenue,
2021
BH,
Refunding,
4%,
5/15/39
..............................
9,375,000
11,341,218
Revenue,
2021
Q,
Refunding,
5%,
5/15/32
...............................
3,210,000
4,350,756
Revenue,
2021
Q,
Refunding,
5%,
5/15/33
...............................
9,540,000
12,859,217
Revenue,
2021
Q,
Refunding,
5%,
5/15/34
...............................
8,205,000
11,012,952
Revenue,
2021
Q,
Refunding,
4%,
5/15/36
...............................
8,000,000
9,797,570
Revenue,
2021
Q,
Refunding,
4%,
5/15/37
...............................
8,360,000
10,197,285
Revenue,
2021
Q,
Refunding,
4%,
5/15/39
...............................
7,050,000
8,492,331
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Upland
Community
Facilities
District
,
City
of
Upland
Community
Facilities
District
No.
2016-1,
Special
Tax,
2021
A,
4%,
9/01/40
........................................................
$
260,000
$
287,399
City
of
Upland
Community
Facilities
District
No.
2016-1,
Special
Tax,
2021
A,
4%,
9/01/45
........................................................
165,000
180,245
City
of
Upland
Community
Facilities
District
No.
2016-1,
Special
Tax,
2021
A,
4%,
9/01/51
........................................................
260,000
282,424
Upland
Unified
School
District
,
GO
,
2011C
,
Zero
Cpn.,
8/01/45
.................
62,900,000
30,162,663
Vacaville
Unified
School
District
,
GO
,
D
,
4
%
,
8/01/45
.........................
2,000,000
2,294,566
Val
Verde
Unified
School
District
,
GO,
2010B,
AGMC
Insured,
Zero
Cpn.,
8/01/34
...........................
1,000,000
1,322,852
GO,
2015B,
Refunding,
BAM
Insured,
5%,
8/01/44
.........................
15,000,000
17,567,448
GO,
2020A,
BAM
Insured,
4%,
8/01/46
.................................
1,450,000
1,653,325
Vallejo
Public
Financing
Authority
,
Vallejo
CA-Hiddenbrooke
Improvement
District
No.
1
,
Revenue
,
2004-A
,
5.8
%
,
9/01/31
....................................
3,495,000
3,535,576
Vista
Redevelopment
Agency
Successor
Agency
,
Tax
Allocation
,
2015B-1
,
Refunding
,
AGMC
Insured
,
5
%
,
9/01/37
..........................................
3,020,000
3,503,321
Vista
Unified
School
District
,
GO,
2002A,
AGMC
Insured,
Zero
Cpn.,
8/01/26
...........................
7,150,000
6,761,097
GO,
2002A,
AGMC
Insured,
Zero
Cpn.,
2/01/27
...........................
4,795,000
4,478,892
Washington
Township
Health
Care
District
,
GO
,
2015B
,
5
%
,
8/01/45
.............
15,000,000
17,156,091
West
Sacramento
Area
Flood
Control
Agency
,
Special
Assessment,
2015,
AGMC
Insured,
5%,
9/01/40
.....................
3,000,000
3,522,060
Special
Assessment,
2015,
AGMC
Insured,
5%,
9/01/45
.....................
7,500,000
8,805,151
West
Sacramento
Financing
Authority
,
Special
Tax
,
A
,
AGMC
Insured
,
5
%
,
9/01/34
..
4,940,000
6,727,811
Western
Placer
Unified
School
District
,
COP
,
2011
,
AGMC
Insured
,
ETM,
5.2
%
,
11/01/41
........................................................
1,000,000
1,029,167
Western
Riverside
Water
&
Wastewater
Financing
Authority
,
Revenue,
2009,
AGMC
Insured,
5.5%,
9/01/34
............................
1,750,000
1,756,513
Revenue,
2009,
AGMC
Insured,
5.625%,
9/01/39
..........................
2,500,000
2,509,104
16,463,504,354
U.S.
Territories
0.6%
Puerto
Rico
0.6%
Children's
Trust
Fund
,
Revenue,
5.5%,
5/15/39
.............................................
6,210,000
6,357,146
Revenue,
2002,
5.625%,
5/15/43
......................................
16,000,000
16,080,296
e
Puerto
Rico
Electric
Power
Authority
,
Revenue,
2012A-RSA-1
2012A,
5%,
7/01/29
.............................
20,000,000
18,150,000
Revenue,
2012A-RSA-1
2013A,
7%,
7/01/33
.............................
50,000,000
46,625,000
Revenue,
WW-RSA-1,
5%,
7/01/28
....................................
12,030,000
10,917,225
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
AES
Puerto
Rico
LP
,
Revenue
,
2000A
,
6.625
%
,
6/01/26
.....
5,800,000
6,003,000
104,132,667
Total
U.S.
Territories
....................................................................
104,132,667
Total
Municipal
Bonds
(Cost
$14,237,417,585)
..................................
16,567,637,021
a
a
a
a
Franklin
California
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
33
s
See
Abbreviations
on
page
45
.
Short
Term
Investments
1.2%
a
a
Principal
Amount
a
Value
Municipal
Bonds
1.2%
California
1.2%
f
California
Statewide
Communities
Development
Authority
,
Rady
Children's
Hospital
Obligated
Group
,
Revenue
,
2008B
,
LOC
Wells
Fargo
Bank
NA
,
Daily
VRDN
and
Put
,
0.04
%
,
8/15/47
...................................................
$
2,900,000
$
2,900,000
f
Irvine
Ranch
Water
District
,
Special
Assessment
,
2009B
,
LOC
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
0.04
%
,
10/01/41
..................................
41,165,000
41,165,000
f
Santa
Clara
Valley
Transportation
Authority
,
2000
Measure
A
Sales
Tax,
Revenue,
2008C,
Refunding,
SPA
TD
Bank
NA,
Daily
VRDN
and
Put,
0.03%,
4/01/36
......................................
7,500,000
7,500,000
2000
Measure
A
Sales
Tax,
Revenue,
2008D,
Refunding,
SPA
TD
Bank
NA,
Daily
VRDN
and
Put,
0.04%,
4/01/36
......................................
3,590,000
3,590,000
f
Southern
California
Public
Power
Authority
,
Revenue
,
2020-3
,
Refunding
,
LOC
Bank
NA
,
Daily
VRDN
and
Put
,
0.04
%
,
7/01/36
...........................
11,300,000
11,300,000
f
State
of
California
,
GO,
2003A-2,
Refunding,
LOC
Bank
of
Montreal,
Daily
VRDN
and
Put,
0.01%,
5/01/33
........................................................
24,120,000
24,120,000
GO,
2003A-3,
Refunding,
LOC
Bank
of
Montreal,
Daily
VRDN
and
Put,
0.02%,
5/01/33
........................................................
27,745,000
27,745,000
GO,
2003C-4,
LOC
US
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
5/01/33
.........
27,900,000
27,900,000
f
University
of
California
,
Revenue,
2013
AL-1,
Daily
VRDN
and
Put,
0.03%,
5/15/48
..................
30,420,000
30,420,000
Revenue,
2013
AL-3,
Refunding,
Daily
VRDN
and
Put,
0.03%,
5/15/48
..........
13,605,000
13,605,000
Revenue,
2013
AL-4,
Refunding,
Daily
VRDN
and
Put,
0.03%,
5/15/48
..........
9,300,000
9,300,000
199,545,000
Total
Municipal
Bonds
(Cost
$199,545,000)
.....................................
199,545,000
Total
Short
Term
Investments
(Cost
$199,545,000
)
...............................
199,545,000
a
Total
Investments
(Cost
$14,436,962,585)
98.9%
................................
$16,767,182,021
Other
Assets,
less
Liabilities
1.1%
.............................................
189,460,943
Net
Assets
100.0%
...........................................................
$16,956,642,964
a
The
maturity
date
shown
represents
the
mandatory
put
date.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
March
31,
2021,
the
aggregate
value
of
these
securities
was
$45,984,739,
representing
0.3%
of
net
assets.
c
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(b).
d
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
e
See
Note
7
regarding
defaulted
securities.
f
Variable
rate
demand
notes
(VRDNs)
are
obligations
which
contain
a
floating
or
variable
interest
rate
adjustment
formula
and
an
unconditional
right
of
demand
to
receive
payment
of
the
principal
balance
plus
accrued
interest
at
specified
dates.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
California
Tax-Free
Income
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
March
31,
2021
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
Franklin
California
Tax-
Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$14,436,962,585
Value
-
Unaffiliated
issuers
..................................................................
$16,767,182,021
Cash
....................................................................................
133,779,675
Receivables:
Investment
securities
sold
...................................................................
42,260,305
Capital
shares
sold
........................................................................
11,042,435
Interest
.................................................................................
164,513,462
Total
assets
..........................................................................
17,118,777,898
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
115,927,241
Capital
shares
redeemed
...................................................................
29,950,201
Management
fees
.........................................................................
6,166,721
Distribution
fees
..........................................................................
1,895,983
Transfer
agent
fees
........................................................................
1,776,214
Distributions
to
shareholders
.................................................................
5,958,939
Accrued
expenses
and
other
liabilities
...........................................................
459,635
Total
liabilities
.........................................................................
162,134,934
Net
assets,
at
value
.................................................................
$16,956,642,964
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$15,505,532,354
Total
distributable
earnings
(losses)
.............................................................
1,451,110,610
Net
assets,
at
value
.................................................................
$16,956,642,964
Franklin
California
Tax-Free
Income
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
March
31,
2021
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
35
Franklin
California
Tax-
Free
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$2,074,343,108
Shares
outstanding
........................................................................
268,914,304
Net
asset
value
per
share
a
..................................................................
$7.71
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$8.01
Class
A1:
Net
assets,
at
value
.......................................................................
$11,084,477,615
Shares
outstanding
........................................................................
1,439,047,954
Net
asset
value
per
share
a
..................................................................
$7.70
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$8.00
Class
C:
Net
assets,
at
value
.......................................................................
$1,018,197,153
Shares
outstanding
........................................................................
132,467,081
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$7.69
Class
R6:
Net
assets,
at
value
.......................................................................
$281,037,724
Shares
outstanding
........................................................................
36,527,318
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$7.69
Advisor
Class:
Net
assets,
at
value
.......................................................................
$2,498,587,364
Shares
outstanding
........................................................................
324,964,103
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$7.69
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
California
Tax-Free
Income
Fund
Financial
Statements
Statement
of
Operations
for
the
year
ended
March
31,
2021
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
Franklin
California
Tax-
Free
Income
Fund
Investment
income:
Interest:
Unaffiliated
issuers
........................................................................
$596,640,838
Expenses:
Management
fees
(Not
e
3a)
...................................................................
73,226,889
Distribution
fees:
(Note
3c)
Class
A
................................................................................
4,427,399
Class
A1
...............................................................................
10,684,582
Class
C
................................................................................
6,992,870
Transfer
agent
fees:
(Note
3e)
Class
A
................................................................................
1,019,430
Class
A1
...............................................................................
6,519,159
Class
C
................................................................................
622,735
Class
R6
...............................................................................
59,561
Advisor
Class
............................................................................
1,362,248
Custodian
fees
(Not
e
4)
......................................................................
90,366
Reports
to
shareholders
......................................................................
205,088
Registration
and
filing
fees
....................................................................
154,289
Professional
fees
...........................................................................
351,756
Trustees'
fees
and
expenses
..................................................................
144,949
Other
....................................................................................
701,315
Total
expenses
.........................................................................
106,562,636
Expense
reductions
(Not
e
4)
...............................................................
(144,564)
Expenses
waived/paid
by
affiliates
(Not
e
3f)
....................................................
(13,123)
Net
expenses
.........................................................................
106,404,949
Net
investment
income
................................................................
490,235,889
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
22,797,752
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
421,902,497
Net
realized
and
unrealized
gain
(loss)
............................................................
444,700,249
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$934,936,138
Franklin
California
Tax-Free
Income
Fund
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
37
Franklin
California
Tax-Free
Income
Fund
Year
Ended
March
31,
2021
Year
Ended
March
31,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$490,235,889
$500,037,492
Net
realized
gain
(loss)
.................................................
22,797,752
(134,416,400)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
421,902,497
237,530,082
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
934,936,138
603,151,174
Distributions
to
shareholders:
Class
A
.............................................................
(48,518,935)
(31,341,778)
Class
A1
............................................................
(328,240,709)
(390,859,950)
Class
C
.............................................................
(25,424,832)
(31,683,409)
Class
R6
............................................................
(6,958,278)
(4,986,690)
Advisor
Class
........................................................
(70,956,814)
(62,073,101)
Total
distributions
to
shareholders
..........................................
(480,099,568)
(520,944,928)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
639,600,509
889,240,042
Class
A1
............................................................
(679,834,875)
(467,749,607)
Class
C
.............................................................
(132,618,274)
(12,029,852)
Class
R6
............................................................
90,043,567
83,819,528
Advisor
Class
........................................................
548,024,489
242,039,708
Total
capital
share
transactions
............................................
465,215,416
735,319,819
Net
increase
(decrease)
in
net
assets
...................................
920,051,986
817,526,065
Net
assets:
Beginning
of
year
.......................................................
16,036,590,978
15,219,064,913
End
of
year
...........................................................
$16,956,642,964
$16,036,590,978
Franklin
California
Tax-Free
Income
Fund
Notes
to
Financial
Statements
38
franklintempleton.com
Annual
Report
1.
Organization
and
Significant
Accounting
Policies
Franklin
California
Tax-Free
Income
Fund (Fund)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
Fund
offers
five
classes
of
shares:
Class
A,
Class
A1,
Class
C,
Class
R6
and
Advisor
Class.
Class
C
shares
automatically
convert
to
Class
A
shares
after
they
have
been
held
for
10
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
The
following
summarizes
the
Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The
Fund’s
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Fund's
Board
of
Trustees
(the
Board),
the
Fund's
administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Debt
securities
generally
trade
in
the
over-the-counter
market
rather
than
on
a
securities
exchange.
The
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-
based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Securities
Purchased
on
a
When-Issued
or
Delayed
Delivery
The
Fund
purchases
securities
on
a
when-issued
or
delayed
delivery
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Fund
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
it
may
sell
the
securities
before
the
settlement
date.
Sufficient
assets
have
been
segregated
for
these
securities.
c.
Income
Taxes
It
is the
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
March
31,
2021,
the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
Franklin
California
Tax-Free
Income
Fund
Notes
to
Financial
Statements
39
franklintempleton.com
Annual
Report
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests.
d.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Dividends
from
net
investment
income
are
normally
declared
daily;
these
dividends
may
be
reinvested
or
paid
monthly
to
shareholders.
Distributions
from
net
realized
capital
gains
and
other
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
e.
Insurance
The
scheduled
payments
of
interest
and
principal
for
each
insured
municipal
security
in
the
Fund
are
insured
by
either
a
new
issue
insurance
policy
or
a
secondary
insurance
policy.
Some
municipal
securities
in
the
Fund
are
secured
by
collateral
guaranteed
by
an
agency
of
the
U.S.
government.
Depending
on
the
type
of
coverage,
premiums
for
insurance
are
either
added
to
the
cost
basis
of
the
security
or
paid
by
a
third
party.
Insurance
companies
typically
insure
municipal
bonds
that
tend
to
be
of
very
high
quality,
with
the
majority
of
underlying
municipal
bonds
rated
A
or
better.
However,
an
event
involving
an
insurer
could
have
an
adverse
effect
on
the
value
of
the
securities
insured
by
that
insurance
company.
There
can
be
no
assurance
the
insurer
will
be
able
to
fulfill
its
obligations
under
the
terms
of
the
policy.
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the
Fund’s
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Fund
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
Additionally,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not
yet
occurred.
Currently,
the
Fund
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Income
Taxes
(continued)
Franklin
California
Tax-Free
Income
Fund
Notes
to
Financial
Statements
40
franklintempleton.com
Annual
Report
2.
Shares
of
Beneficial
Interest
At
March
31,
2021,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund’s
shares
were
as
follows:
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Fund
are
also
officers
and/or
directors
of
the
following
subsidiaries:
Year
Ended
March
31,
2021
Year
Ended
March
31,
2020
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
116,764,837
$900,106,033
147,850,300
$1,129,226,407
Shares
issued
in
reinvestment
of
distributions
..........
5,649,675
43,540,099
3,713,022
28,452,283
Shares
redeemed
...............................
(39,521,104)
(304,045,623)
(36,071,424)
(268,438,648)
Net
increase
(decrease)
..........................
82,893,408
$639,600,509
115,491,898
$889,240,042
Class
A1
Shares:
Shares
sold
...................................
38,448,447
$295,862,358
63,767,239
$484,727,281
Shares
issued
in
reinvestment
of
distributions
..........
35,578,222
273,460,524
42,461,763
323,900,166
Shares
redeemed
...............................
(163,644,176)
(1,249,157,757)
(168,900,892)
(1,276,377,054)
Net
increase
(decrease)
..........................
(89,617,507)
$(679,834,875)
(62,671,890)
$(467,749,607)
Class
C
Shares:
Shares
sold
...................................
21,886,128
$168,140,968
43,981,976
$335,147,952
Shares
issued
in
reinvestment
of
distributions
..........
3,102,271
23,791,412
3,752,742
28,558,209
Shares
redeemed
a
..............................
(42,202,150)
(324,550,654)
(49,771,041)
(375,736,013)
Net
increase
(decrease)
..........................
(17,213,751)
$(132,618,274)
(2,036,323)
$(12,029,852)
Class
R6
Shares:
Shares
sold
...................................
18,408,171
$141,741,350
15,488,743
$118,031,661
Shares
issued
in
reinvestment
of
distributions
..........
897,010
6,895,210
646,831
4,937,451
Shares
redeemed
...............................
(7,653,152)
(58,592,993)
(5,240,812)
(39,149,584)
Net
increase
(decrease)
..........................
11,652,029
$90,043,567
10,894,762
$83,819,528
Advisor
Class
Shares:
Shares
sold
...................................
129,992,816
$988,998,367
92,321,947
$701,556,237
Shares
issued
in
reinvestment
of
distributions
..........
8,037,135
61,706,862
6,874,739
52,369,097
Shares
redeemed
...............................
(65,656,687)
(502,680,740)
(67,887,140)
(511,885,626)
Net
increase
(decrease)
..........................
72,373,264
$548,024,489
31,309,546
$242,039,708
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Templeton
Distributors,
Inc.
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Franklin
California
Tax-Free
Income
Fund
Notes
to
Financial
Statements
41
franklintempleton.com
Annual
Report
a.
Management
Fees
The
Fund
pays
an
investment
management
fee
to
Advisers
based
on
the
month-end
net
assets
of
the
Fund
as
follows:
For
the
year
ended
March
31,
2021,
the
gross
effective
investment
management
fee
rate
was
0.438%
of
the
Fund’s
average
daily
net
assets.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund’s
Class
A
and
A1
reimbursement
distribution
plans,
the
Fund
reimburses
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rates
for
each
class.
Under
the
Class
A
and
A1
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Fund’s
Class
C
compensation
distribution
plan,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
Fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund's
shares
for
the
year:
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
In
excess
of
$20
billion
Class
A
....................................................................................
0.25%
Class
A1
...................................................................................
0.10%
Class
C
....................................................................................
0.65%
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$171,490
CDSC
retained
..............................................................................
$511,704
3.
Transactions
with
Affiliates
(continued)
Franklin
California
Tax-Free
Income
Fund
Notes
to
Financial
Statements
42
franklintempleton.com
Annual
Report
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
year
ended
March
31,
2021,
the
Fund
paid
transfer
agent
fees
of
$9,583,133,
of
which $4,301,429
was
retained
by
Investor
Services.
f.
Waiver
and
Expense
Reimbursements
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.02%
based
on
the
average
net
assets
of
the
class
until
July
31,
2021.
g.
Interfund
Transactions
The
Fund
engaged
in
purchases
and
sales
of
investments
with
funds
or
other
accounts
that
have
common
investment
managers
(or
affiliated
investment
managers),
directors,
trustees
or
officers.
During
the
year
ended
March
31,
2021,
these
purchase
and
sale
transactions
aggregated
$261,330,000
and
$281,970,000,
respectively.
4.
Expense
Offset
Arrangement
The Fund has
entered
into
an
arrangement
with
its
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Fund's
custodian
expenses.
During
the
year
ended
March
31,
2021,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
March
31,
2021,
the
capital
loss
carryforwards
were
as
follows:
During
the
year
ended March
31,
2021,
the
Fund
utilized
$23,059,587
of
capital
loss
carryforwards.
The
tax
character
of
distributions
paid
during
the
years
ended
March
31,
2021
and
2020,
was
as
follows:
At
March
31,
2021,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation),
undistributed
tax
exempt
income
and
undistributed
ordinary
income
for
income
tax
purposes
were
as
follows:
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$460,332,105
Long
term
................................................................................
433,219,537
Total
capital
loss
carryforwards
...............................................................
$893,551,642
2021
2020
Distributions
paid
from:
Tax
exempt
income
........................................................
$480,099,568
$520,944,928
3.
Transactions
with
Affiliates
(continued)
Franklin
California
Tax-Free
Income
Fund
Notes
to
Financial
Statements
43
franklintempleton.com
Annual
Report
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatment
of
bond
discounts.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
year
ended
March
31,
2021,
aggregated
$3,325,398,873
and
$2,341,999,151,
respectively.
7.
Defaulted
Securities
The
Fund
held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
March
31,
2021,
the
aggregate
value
of
these
securities
was
$75,692,225,
representing
0.4%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Statement
of
Investments.
8.
Concentration
of
Risk
The
Fund
invests
a
large
percentage
of
its total
assets
in
obligations
of
issuers
within
its
California
and
U.S.
territories.
Such
concentration
may
subject
the
Fund
to
risks
associated
with
industrial
or
regional
matters,
and
economic,
political
or
legal
developments
occurring
within
California
and
U.S.
territories.
Investing
in
Puerto
Rico
securities
may
expose
the
Fund
to
heightened
risks
due
to
recent
adverse
economic
and
market
changes,
credit
downgrades
and
ongoing
restructuring
discussions.
In
addition,
investments
in
these
securities
are
sensitive
to
interest
rate
changes
and
credit
risk
of
the
issuer
and
may
subject
the
Fund
to
increased
market
volatility.
The
market
for
these
investments
may
be
limited,
which
may
make
them
difficult
to
buy
or
sell.
9. Novel
Coronavirus
Pandemic
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the Fund, its ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and its ability
to
achieve its investment
objectives.
Cost
of
investments
..........................................................................
$14,442,136,232
Unrealized
appreciation
........................................................................
$2,358,336,456
Unrealized
depreciation
........................................................................
(33,290,667)
Net
unrealized
appreciation
(depreciation)
..........................................................
$2,325,045,789
Distributable
earnings:
Undistributed
ordinary
income
...................................................................
$87,588
Undistributed
tax
exempt
income
.................................................................
$25,487,820
Total
distributable
earnings
.....................................................................
$25,575,408
5.
Income
Taxes
(continued)
Franklin
California
Tax-Free
Income
Fund
Notes
to
Financial
Statements
44
franklintempleton.com
Annual
Report
10.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
4,
2022.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
year
ended
March
31,
2021,
the Fund
did
not
use
the
Global
Credit
Facility.
11.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund’s
financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund’s
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
At
March
31,
2021,
all
of
the
Fund’s
investments
in
financial
instruments
carried
at
fair
value
were
valued
using
Level
2
inputs.
12.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
The
amendments
in
the
ASU
provides
optional
temporary
financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR)
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021.
The
ASU
is
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
this
ASU
will
not
have
a
material
impact
on
the
financial
statements.
13.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Franklin
California
Tax-Free
Income
Fund
Notes
to
Financial
Statements
45
franklintempleton.com
Annual
Report
Abbreviations
Selected
Portfolio
ABAG
Association
of
Bay
Area
Governments
AGMC
Assured
Guaranty
Municipal
Corp.
AMBAC
American
Municipal
Bond
Assurance
Corp.
BAM
Build
America
Mutual
Assurance
Co.
COP
Certificate
of
Participation
ETM
Escrowed
to
Maturity
FGIC
Financial
Guaranty
Insurance
Co..
FHA
Federal
Housing
Administration
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FNMA
Federal
National
Mortgage
Association
GNMA
Government
National
Mortgage
Association
GO
General
Obligation
LOC
Letter
of
Credit
NATL
National
Reinsurance
Corp.
SPA
Standby
Purchase
Agreement
Franklin
California
Tax-Free
Income
Fund
Report
of
Independent
Registered
Public
Accounting
Firm
46
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
and
Shareholders
of
Franklin
California
Tax-Free
Income
Fund
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
statement
of
investments,
of
Franklin
California
Tax-Free
Income
Fund
(constituting
Franklin
California
Tax-Free
Income
Fund,
hereafter
collectively
referred
to
as
the
"Fund")
as
of
March
31,
2021,
the
related
statement
of
operations
for
the
year
ended
March
31,
2021,
the
statement
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
March
31,
2021,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
periods
indicated
therein
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
March
31,
2021,
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
ended
March
31,
2021
and
the
financial
highlights
for
each
of
the
periods
indicated
therein
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund’s
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund’s
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(“PCAOB”)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
March
31,
2021
by
correspondence
with
the
custodian
and
broker;
when
replies
were
not
received
from
the
broker,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
PricewaterhouseCoopers
LLP
San
Francisco,
California
May
20,
2021
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
funds
since
1948.
Franklin
California
Tax-Free
Income
Fund
47
franklintempleton.com
Annual
Report
Tax
Information
(unaudited)
Under
Section
852(b)(5)(A)
of
the
Internal
Revenue
Code,
the
Fund
hereby
report
100%
of
the
distributions
paid
from
net
investment
income
as
exempt-interest
dividends
for
the
fiscal
year
ended
March
31,
2021.
A
portion
of
the
Funds'
exempt-
interest
dividends
may
be
subject
to
the
federal
alternative
minimum
tax.
By
mid-February
2022,
shareholders
will
be
notified
of
amounts
for
use
in
preparing
their
2021
income
tax
returns.
Franklin
California
Tax-Free
Income
Fund
Board
Members
and
Officers
48
franklintempleton.com
Annual
Report
The
name,
year
of
birth
and
address
of
the
officers
and
board
members,
as
well
as
their
affiliations,
positions
held
with
the
Fund,
principal
occupations
during
at
least
the
past
five
years
and
number
of
U.S.
registered
portfolios
overseen
in
the
Franklin
Templeton
fund
complex,
are
shown
below.
Generally,
each
board
member
serves
until
that
person’s
successor
is
elected
and
qualified.
Independent
Board
Members
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Harris
J.
Ashton
(1932)
Trustee
Since
1977
126
Bar-S
Foods
(meat
packing
company)
(1981-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Director,
RBC
Holdings,
Inc.
(bank
holding
company)
(until
2002);
and
President,
Chief
Executive
Officer
and
Chairman
of
the
Board,
General
Host
Corporation
(nursery
and
craft
centers)
(until
1998).
Terrence
J.
Checki
(1945)
Trustee
Since
2017
107
Hess
Corporation
(exploration
of
oil
and
gas)
(2014-present).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Member
of
the
Council
on
Foreign
Relations
(1996-present);
Member
of
the
National
Committee
on
U.S.-China
Relations
(1999-present);
member
of
the
board
of
trustees
of
the
Economic
Club
of
New
York
(2013-present);
member
of
the
board
of
trustees
of
the
Foreign
Policy
Association
(2005-present);
member
of
the
board
of
directors
of
Council
of
the
Americas
(2007-present)
and
the
Tallberg
Foundation
(2018-present);
and
formerly
,
Executive
Vice
President
of
the
Federal
Reserve
Bank
of
New
York
and
Head
of
its
Emerging
Markets
and
Internal
Affairs
Group
and
Member
of
Management
Committee
(1995-2014);
and
Visiting
Fellow
at
the
Council
on
Foreign
Relations
(2014).
Mary
C.
Choksi
(1950)
Trustee
Since
2014
126
Omnicom
Group
Inc.
(advertising
and
marketing
communications
services)
(2011-present)
and
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2017-present);
and
formerly
,
Avis
Budget
Group
Inc.
(car
rental)
(2007-2020).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(investment
management
group)
(2015-2017);
Founding
Partner
and
Senior
Managing
Director,
Strategic
Investment
Group
(1987-2015);
Founding
Partner
and
Managing
Director,
Emerging
Markets
Management
LLC
(investment
management
firm)
(1987-2011);
and
Loan
Officer/Senior
Loan
Officer/Senior
Pension
Investment
Officer,
World
Bank
Group
(international
financial
institution)
(1977-1987).
Franklin
California
Tax-Free
Income
Fund
49
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
1998
and
Lead
Independent
Trustee
since
2019
126
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-present),
Canadian
National
Railway
(railroad)
(2001-present),
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2004-present),
Santander
Consumer
USA
Holdings,
Inc.
(consumer
finance)
(2016-present);
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
RTI
International
Metals,
Inc.
(manufacture
and
distribution
of
titanium)
(1999-2015)
and
H.J.
Heinz
Company
(processed
foods
and
allied
products)
(1994-2013).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
or
Trustee
of
various
companies
and
trusts;
and
formerly
,
Assistant
to
the
President
of
the
United
States
and
Secretary
of
the
Cabinet
(1990-1993);
General
Counsel
to
the
United
States
Treasury
Department
(1989-1990);
and
Counselor
to
the
Secretary
and
Assistant
Secretary
for
Public
Affairs
and
Public
Liaison-United
States
Treasury
Department
(1988-1989).
J.
Michael
Luttig
(1954)
Trustee
Since
2009
126
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Private
investor;
and
formerly
,
Counselor
and
Senior
Advisor
to
the
Chairman,
CEO,
and
Board
of
Directors,
of
The
Boeing
Company
(aerospace
company),
and
member
of
the
Executive
Council
(May
2019-January
1,
2020);
Executive
Vice
President,
General
Counsel
and
member
of
the
Executive
Council,
The
Boeing
Company
(2006-2019);
and
Federal
Appeals
Court
Judge,
United
States
Court
of
Appeals
for
the
Fourth
Circuit
(1991-2006).
Larry
D.
Thompson
(1945)
Trustee
Since
2007
126
Graham
Holdings
Company
(education
and
media
organization)
(2011-present);
and
formerly
,
The
Southern
Company
(energy
company)
(2014-2020;
previously
2010-2012)
and
Cbeyond,
Inc.
(business
communications
provider)
(2010-2012).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
Counsel,
Finch
McCranie,
LLP
(law
firm)
(2015-present);
John
A.
Sibley
Professor
of
Corporate
and
Business
Law,
University
of
Georgia
School
of
Law
(2015-present;
previously
2011-2012);
and
formerly
,
Independent
Compliance
Monitor
and
Auditor,
Volkswagen
AG
(manufacturer
of
automobiles
and
commercial
vehicles)
(2017-2020);
Executive
Vice
President
-
Government
Affairs,
General
Counsel
and
Corporate
Secretary,
PepsiCo,
Inc.
(consumer
products)
(2012-2014);
Senior
Vice
President
-
Government
Affairs,
General
Counsel
and
Secretary,
PepsiCo,
Inc.
(2004-2011);
Senior
Fellow
of
The
Brookings
Institution
(2003-2004);
Visiting
Professor,
University
of
Georgia
School
of
Law
(2004);
and
Deputy
Attorney
General,
U.S.
Department
of
Justice
(2001-2003).
Independent
Board
Members
(continued)
Franklin
California
Tax-Free
Income
Fund
50
franklintempleton.com
Annual
Report
Interested
Board
Members
and
Officers
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
**Gregory
E.
Johnson
(1961)
Trustee
Since
2013
137
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Executive
Chairman,
Chairman
of
the
Board
and
Director,
Franklin
Resources,
Inc.;
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
39
of
the
investment
companies
in
Franklin
Templeton;
Vice
Chairman,
Investment
Company
Institute;
and
formerly
,
Chief
Executive
Officer
(2013-2020)
and
President
(1994-2015),
Franklin
Resources,
Inc.
**Rupert
H.
Johnson,
Jr.
(1940)
Chairman
of
the
Board,
Trustee
and
Vice
President
Chairman
of
the
Board
since
2013,
Trustee
since
1983
and
Vice
President
since
1982
126
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
(Vice
Chairman),
Franklin
Resources,
Inc.;
Director,
Franklin
Advisers,
Inc.;
and
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
37
of
the
investment
companies
in
Franklin
Templeton.
Ben
Barber
(1969)
Vice
President
Since
July
2020
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Advisers,
Inc.;
Director,
Municipal
Bonds;
officer
of
seven
of
the
investment
companies
in
Franklin
Templeton;
and
formerly
,
Co-Head
of
Municipal
Bonds,
Goldman
Sachs
Asset
Management
(1999-2020).
Alison
E.
Baur
(1964)
Vice
President
Since
2012
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Deputy
General
Counsel,
Franklin
Templeton;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
42
of
the
investment
companies
in
Franklin
Templeton.
Breda
M.
Beckerle
(1958)
Chief
Compliance
Officer
Since
October
2020
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Chief
Compliance
Officer,
Fiduciary
Investment
Management
International,
Inc.,
Franklin
Advisers,
Inc.,
Franklin
Advisory
Services,
LLC,
Franklin
Mutual
Advisers,
LLC,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
42
of
the
investment
companies
in
Franklin
Templeton.
Sonal
Desai,
Ph.D.
(1963)
President
and
Chief
Executive
Officer
–
Investment
Management
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
and
Executive
Vice
President,
Franklin
Advisers,
Inc.;
Executive
Vice
President,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
17
of
the
investment
companies
in
Franklin
Templeton.
Franklin
California
Tax-Free
Income
Fund
51
franklintempleton.com
Annual
Report
*We
base
the
number
of
portfolios
on
each
separate
series
of
the
U.S.
registered
investment
companies
within
the
Franklin
Templeton
fund
complex.
These
portfolios
have
a
common
investment
manager
or
affiliated
investment
managers.
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Steven
J.
Gray
(1955)
Vice
President
and
Co-Secretary
Vice
President
since
2009
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Vice
President,
Franklin
Templeton
Distributors,
Inc.
and
FASA,
LLC;
and
officer
of
42
of
the
investment
companies
in
Franklin
Templeton.
Matthew
T.
Hinkle
(1971)
Chief
Executive
Officer
–
Finance
and
Administration
Since
2017
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Templeton
Services,
LLC;
officer
of
42
of
the
investment
companies
in
Franklin
Templeton;
and
formerly
,
Vice
President,
Global
Tax
(2012-April
2017)
and
Treasurer/Assistant
Treasurer,
Franklin
Templeton
(2009-2017).
Robert
G.
Kubilis
(1973)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
December
2020
Not
Applicable
Not
Applicable
300
S.E.
2nd
Street
Fort
Lauderdale,
FL
33301-
1923
Principal
Occupation
During
at
Least
the
Past
5
Years:
Treasurer,
U.S.
Fund
Administration
&
Reporting
and
officer
of
39
of
the
investment
companies
in
Franklin
Templeton.
Robert
Lim
(1948)
Vice
President
–
AML
Compliance
Since
2016
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Vice
President,
Franklin
Templeton
Companies,
LLC;
Chief
Compliance
Officer,
Franklin
Templeton
Distributors,
Inc.
and
Franklin
Templeton
Investor
Services,
LLC;
and
officer
of
42
of
the
investment
companies
in
Franklin
Templeton.
Navid
J.
Tofigh
(1972)
Vice
President
Since
2015
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Associate
General
Counsel
and
officer
of
42
of
the
investment
companies
in
Franklin
Templeton.
Craig
S.
Tyle
(1960)
Vice
President
Since
2005
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
General
Counsel
and
Executive
Vice
President,
Franklin
Resources,
Inc.;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
42
of
the
investment
companies
in
Franklin
Templeton.
Lori
A.
Weber
(1964)
Vice
President
and
Co-Secretary
Vice
President
since
2011
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
300
S.E.
2nd
Street
Fort
Lauderdale,
FL
33301-
1923
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Assistant
Secretary,
Franklin
Resources,
Inc.;
Vice
President
and
Secretary,
Templeton
Investment
Counsel,
LLC;
and
officer
of
42
of
the
investment
companies
in
Franklin
Templeton.
Interested
Board
Members
and
Officers
(continued)
Franklin
California
Tax-Free
Income
Fund
52
franklintempleton.com
Annual
Report
**Gregory
E.
Johnson
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
of
Franklin
Resources,
Inc.
(Resources),
which
is
the
parent
company
of
the
Fund’s
investment
manager
and
distributor.
Rupert
H.
Johnson,
Jr.
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
and
major
shareholder
of
Resources.
Note
1:
Rupert
H.
Johnson,
Jr.
is
the
uncle
of
Gregory
E.
Johnson.
Note
2:
Officer
information
is
current
as
of
the
date
of
this
report.
It
is
possible
that
after
this
date,
information
about
officers
may
change.
The
Sarbanes-Oxley
Act
of
2002
and
Rules
adopted
by
the
Securities
and
Exchange
Commission
require
the
Fund
to
disclose
whether
the
Fund’s
Audit
Committee
includes
at
least
one
member
who
is
an
audit
committee
financial
expert
within
the
meaning
of
such
Act
and
Rules.
The
Fund’s
Board
has
determined
that
there
is
at
least
one
such
financial
expert
on
the
Audit
Committee
and
has
designated
Mary
C.
Choksi
as
its
audit
committee
financial
expert.
The
Board
believes
that
Ms.
Choksi
qualifies
as
such
an
expert
in
view
of
her
extensive
business
background
and
experience.
She
served
as
a
director
of
Avis
Budget
Group,
Inc.
(2007-May
2020)
and
formerly,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(1987
to
2017).
Ms.
Choksi
has
been
a
Member
of
the
Fund’s
Audit
Committee
since
2014.
As
a
result
of
such
background
and
experience,
the
Board
believes
that
Ms.
Choksi
has
acquired
an
understanding
of
generally
accepted
accounting
principles
and
financial
statements,
the
general
application
of
such
principles
in
connection
with
the
accounting
estimates,
accruals
and
reserves,
and
analyzing
and
evaluating
financial
statements
that
present
a
breadth
and
level
of
complexity
of
accounting
issues
generally
comparable
to
those
of
the
Fund,
as
well
as
an
understanding
of
internal
controls
and
procedures
for
financial
reporting
and
an
understanding
of
audit
committee
functions.
Ms.
Choksi
is
an
independent
Board
member
as
that
term
is
defined
under
the
relevant
Securities
and
Exchange
Commission
Rules
and
Releases.
The
Statement
of
Additional
Information
(SAI)
includes
additional
information
about
the
board
members
and
is
available,
without
charge,
upon
request.
Shareholders
may
call
(800)
DIAL
BEN/342-5236
to
request
the
SAI.
Interested
Board
Members
and
Officers
(continued)
Franklin
California
Tax-Free
Income
Fund
Shareholder
Information
53
franklintempleton.com
Annual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
CALIFORNIA
TAX-FREE
INCOME
FUND
(Fund)
At
a
meeting
held
on
February
23,
2021
(Meeting),
the
Board
of
Trustees
(Board)
of
the
Fund,
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Fund
(Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
the
Management
Agreement.
In
considering
the
continuation
of
the
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
telephonic
contract
renewal
meeting
at
which
the
Independent
Trustees
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters
and,
in
some
cases,
requested
additional
information
from
the
Manager
relating
to
the
contract.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
the
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
the
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
the
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
the
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
the
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
such
Management
Agreement
is
in
the
best
interests
of
the
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-
party
service
providers;
investment
performance
reports
and
related
financial
information
for
the
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Fund
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-
party
servicing
arrangements,
which
included
discussion
of
the
changing
distribution
landscape
for
the
Fund.
The
Board
noted
management’s
continuing
efforts
and
expenditures
in
establishing
effective
business
continuity
plans
and
developing
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
such
as
cybersecurity
in
the
current
work-from-home
environment
and
liquidity
risk
management.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Fund
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
enhancing
services
and
controlling
costs,
as
reflected
in
its
outsourcing
of
certain
administrative
functions,
and
growth
opportunities,
Franklin
California
Tax-Free
Income
Fund
Shareholder
Information
54
franklintempleton.com
Annual
Report
as
evidenced
by
its
recent
acquisition
of
the
Legg
Mason
companies.
The
Board
also
noted
FT’s
attention
focused
on
expanding
the
distribution
opportunities
for
all
funds
in
the
FT
family
of
funds.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
November
30,
2020.
The
Board
considered
the
performance
returns
for
the
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
the
Fund’s
performance
results
is
below.
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
California
municipal
debt
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
and
annualized
total
return
for
the
one-,
three-,
five-
and
10-
year
periods
were
above
the
medians
and
in
the
first
(best)
and
second
quintiles
of
its
Performance
Universe.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-
management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
the
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A1
shares
for
the
Fund
and
for
Class
A
shares
or
Class
M
shares
for
each
other
fund
in
the
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
The
Expense
Group
for
the
Fund
included
the
Fund
and
nine
other
California
municipal
debt
funds.
The
Board
noted
that
the
Management
Rate
for
the
Fund
was
slightly
above
the
median
of
its
Expense
Group,
but
its
actual
total
expense
ratio
was
below
the
median
and
in
the
first
quintile
(least
expensive)
of
its
Expense
Group.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
the
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2020,
being
the
most
recent
fiscal
year-
end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Fund’s
profitability
report
presentations
from
prior
years.
The
Board
further
noted
management’s
representation
that
the
profitability
analysis
excluded
the
impact
of
the
recent
acquisition
of
the
Legg
Mason
companies
and
that
management
expects
to
incorporate
the
legacy
Legg
Mason
companies
into
the
profitability
analysis
beginning
next
year.
Additionally,
PricewaterhouseCoopers
LLP,
auditor
to
FRI
and
certain
FT
funds,
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
Franklin
California
Tax-Free
Income
Fund
Shareholder
Information
55
franklintempleton.com
Annual
Report
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
the
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
certain
operations,
which
effort
has
required
considerable
up
front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Fund,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
the
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
the
Fund
grows
larger
and
whether
the
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
the
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
concluded
that,
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
the
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
the
Management
Agreement
for
an
additional
one-year
period.
Proxy
Voting
Policies
and
Procedures
The
Fund’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Fund’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Fund’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Statement
of
Investments
The
Fund
files
a
complete
statement
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
the
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
1112
A
05/21
©
2021
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Annual
Report
and
Shareholder
Letter
Franklin
California
Tax-Free
Income
Fund
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Templeton
Distributors,
Inc.
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Item 2. Code of Ethics.
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
Item 3. Audit Committee Financial Expert.
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
Item 4. Principal Accountant Fees and Services.
(a) Audit Fees
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $109,217 for the fiscal year ended March 31, 2021 and $95,734 for the fiscal year ended March 31, 2020.
(b) Audit-Related Fees
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.
(c) Tax Fees
There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $0 for the fiscal year ended March 31, 2021 and $10,000 for the fiscal year ended March 31, 2020. The services for which these fees were paid included professional fees in connection with tax treatment of equipment lease transactions.
(d) All Other Fees
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4 were $0 for the fiscal year ended March 31, 2021 and $6,593 for the fiscal year ended March 31, 2020. The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process.
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $36,800 for the fiscal year ended March 31, 2021 and $190,144 for the fiscal year ended March 31, 2020. The services for which these fees were paid included professional fees in connection with determining the feasibility of a U.S. direct lending structure, valuation services related to a fair value engagement, the issuance of an Auditor’s Certificate for South Korean regulatory shareholders disclosures, benchmarking services in connection with the ICI TA Survey and assets under management certification.
(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:
(i) pre-approval of all audit and audit related services;
(ii) pre-approval of all non-audit related services to be provided to the Fund by the auditors;
(iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and
(iv) establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.
(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.
(f) No disclosures are required by this Item 4(f).
(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $36,800 for the fiscal year ended March 31, 2021 and $206,737 for the fiscal year ended March 31, 2020.
(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed Registrants. N/A
Item 6. Schedule of Investments. N/A
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A
Item 8. Portfolio Managers of Closed-End Management Investment Companies. N/A
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers. N/A
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures.
(a) Evaluation of Disclosure Controls and Procedures.
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b) Changes in Internal Controls.
There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company. N/A
Item 13. Exhibits.
(a) (1) Code of Ethics
(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of
Matthew T. Hinkle
, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of
Matthew T. Hinkle
, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND
By ___S\Matthew T. Hinkle ____
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date May 26, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By ___S\Matthew T. Hinkle ____
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date May 26, 2021
By ___S\Robert G. Kubilis _____
Robert G. Kubilis
Chief Financial Officer and Chief Accounting Officer
Date May 26, 2021