Oppenheimer Rochester California Municipal Fund NCSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number 811-5586

Oppenheimer California Municipal Fund

(Exact name of registrant as specified in charter)

6803 South Tucson Way, Centennial, Colorado 80112-3924

(Address of principal executive offices) (Zip code)

Arthur S. Gabinet

OppenheimerFunds, Inc.

Two World Financial Center, New York, New York 10281-1008

(Name and address of agent for service)

Registrant’s telephone number, including area code: (303) 768-3200

Date of fiscal year end: July 31

Date of reporting period: 7/31/2012

Item 1. Reports to Stockholders.

July 31, 2012

Oppenheimer

California Municipal Fund

Management
Commentary
and
Annual Report

LOGO

MANAGEMENT COMMENTARY

An Interview with Your Fund’s Portfolio Managers

ANNUAL REPORT

Listing of Top Holdings

Fund Performance Discussion

Financial Statements

“We hope that the recent strength of the municipal bond market has renewed investors’ confidence in the market’s powerful ability to help investors earn tax-advantaged income.”

Dan Loughran, Senior Vice President, Senior Portfolio Manager and Team Leader, OppenheimerFunds/Rochester

LOGO

TOP HOLDINGS AND ALLOCATIONS



Top Ten Categories
Special Tax		22.3	%
Tobacco-Master Settlement Agreement		17.6
General Obligation		10.1
Tax Increment Financing (TIF)		8.0
Hospital/Healthcare		5.9
Municipal Leases		5.1
Water Utilities		4.4
Sales Tax Revenue		3.5
Special Assessment		2.9
Marine/Aviation Facilities		2.8

Portfolio holdings are subject to change. Percentages are as of July 31, 2012, and are based on total assets.

Credit Rating Breakdown	NRSRO Only Total
AAA		2.7	%
AA		23.0
A		17.4
BBB		19.2
BB and lower		8.3
Unrated		29.4

Total		100.0	%

The percentages above are based on the market value of the Fund’s securities as of July 31, 2012, and are subject to change. All securities except for those labeled “unrated” have been rated by at least one Nationally Recognized Statistical Rating Organization (“NRSRO”), such as Standard & Poor’s (“S&P”). For securities rated only by an NRSRO other than S&P, OppenheimerFunds, Inc. (the “Manager”) converts that rating to the equivalent S&P rating. If two or more NRSROs have assigned a rating to a security, the highest rating is used. Unrated securities do not necessarily indicate low credit quality.

For the purposes of this Credit Allocation table, “investment-grade” securities are securities rated within the NRSROs’ four highest rating categories, which include AAA, AA, A and BBB. Securities not rated by an NRSRO may or may not be equivalent of investment grade. For further details, please consult the Fund’s prospectus or Statement of Additional Information.


10				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

FUND PERFORMANCE DISCUSSION

How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc., of the Fund’s performance during its fiscal year ended July 31, 2012, followed by a graphical comparison of the Fund’s performance to appropriate broad-based market indices.

Management’s Discussion of Fund Performance. In the reporting period ended July 31, 2012, Oppenheimer California Municipal Fund benefited from a rally in the municipal market and produced an annual total return of 20.31% at net asset value (14.59% with sales charge).

The charts on pages 15 to 18 show the Fund’s performance. We encourage investors to remain focused on their long-term financial objectives, and we believe that this Fund’s investments offer structural advantages that can help shareholders achieve their investment goals over the long term.

Oppenheimer California Municipal Fund remained invested in land development (or “dirt”) bonds, which are Special Tax and Special Assessment bonds that help finance the infrastructure needs of new real estate development. At the end of this reporting period, the Special Tax and Special Assessment sectors represented 22.3% and 2.9% of the Fund’s total assets, respectively.

In our opinion, bonds in these sectors overall have several appealing characteristics: the debt service payments securing these bonds are on parity with real estate taxes and senior to mortgage payments, and assessments or taxes must be paid by whoever owns the land when the tax bill comes due. In this reporting period, the Fund experienced a reduction in the number of holdings that missed or were likely to miss a scheduled payment of interest or principal, and some positions in these two sectors were sold. For example, the Fund sold its position in a Lathrop project that had been slated to include single-family homes and some commercial development in San Joaquin County. As reported earlier, the developer abandoned the land—without even starting construction—and no debt payments were made.

The Special Tax and Special Assessment sectors were both positive contributors to the Fund’s total return this reporting period. We will continue to hold carefully researched dirt bonds in our portfolios, as improvements in the housing market and the general economy could strengthen the credit profiles of these sectors going forward. The Fund remains focused on working through other distressed situations and will continue to sell holdings opportunistically.

The Fund continued to be invested this reporting period in bonds backed by proceeds from the tobacco Master Settlement Agreement (the MSA), the national litigation settlement


11				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

FUND PERFORMANCE DISCUSSION

with U.S tobacco manufacturers. At the end of this reporting period, MSA-backed tobacco bonds accounted for 17.6% of the Fund’s total assets and contributed positively to Fund performance.⁵

As in prior reporting periods, the tobacco bonds this Fund held during this reporting period made all scheduled payments of interest and principal on time and in full. Our long-term view of the sector remains bullish and, given attractive valuations, we will likely continue to hold a greater percentage of tobacco bonds in our portfolios than our peers. We are confident that this sector will continue to provide high levels of tax-free income to the long-term benefit of our yield-seeking investors.

General obligation debt backed by the full faith and taxing authority of the state and local governments represented 10.1% of the Fund’s total assets as of July 31, 2012. California officials consistently safeguarded the debt service payments on their general obligation bonds this reporting period, while working to resolve their ongoing budget challenges.

Tax increment financing (TIF) bonds constituted 8.0% of the Fund’s total assets at the end of the reporting period. Traditionally, this type of financing has been used for urban renewal projects. Increased tax collections as a result of inflation or an improving economy typically prove favorable for these types of bonds. The TIF sector contributed favorably to the Fund’s total return this reporting period, despite the legal wrangling over the elimination of the state’s redevelopment agencies and subsequent questions about successor agencies.

Securities issued in the Commonwealth of Puerto Rico, which are exempt from federal, state and local income taxes, represented 7.1% of the Fund’s net assets on July 31, 2012. The Fund’s holding come from many different sectors, including the sales tax revenue sector, as well as general obligation debt. These investments are supported by taxes and other revenues designed to help finance electric utilities, highways and education.

During this reporting period, the market continued to react favorably to better fiscal management under the leadership of Gov. Luis Fortuño. This discipline has helped Puerto Rico significantly reduce pressure on its municipal bonds. The administration proposed

5. Investments in “tobacco bonds,” which are backed by the proceeds a state or territory receives from the 1998 national litigation settlement with tobacco manufacturers, may be vulnerable to economic and/or legislative events that affect issuers in a particular municipal market sector. Annual payments by MSA-participating manufacturers, for example, hinge on many factors, including annual domestic cigarette shipments, inflation and the relative market share of non-participating manufacturers. To date, we believe consumption figures remain within an acceptable range of the assumptions used to structure MSA bonds. Future MSA payments could be reduced if consumption were to fall more rapidly than originally forecast.


12				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

another deficit budget for the fiscal year that began July 1, 2012, but has lowered the size of the deficit relative to spending considerably in recent years.

Bond sales have remained strong, despite concerns raised over credit quality. In a period of low issuance, the Puerto Rico Aqueduct and Sewer Authority came to market in February 2012 with $1.8 billion in senior-lien revenue bonds, the largest scheduled sale in the long-term market to date for the year. It came to market once again in March 2012, with another significant sale for $2.3 billion in public improvement refunding bonds, an increase from the anticipated $1.5 billion priced ahead of schedule.

During this reporting period, both S&P and Moody’s revised their outlooks on general obligation debt issued by the Commonwealth. As of July 31, 2012, the S&P rating was BBB and the Moody's rating was Baa1, both with negative outlooks. While the ratings agencies have raised concerns about the fiscal environment’s potential to delay structurally balanced budgets in the near future, our stance remains bullish. We continue to remain confident in the Commonwealth’s ability to collect taxes and make its bond payments.

While most of the Fund’s Puerto Rico investments contributed positively to the Fund’s total return this reporting period, the underperformance of bonds issued by AMR Corporation, the parent company of American Airlines, was such that the Fund’s Puerto Rico holdings, in aggregate, detracted from the Fund’s total return. In November 2011, AMR filed for bankruptcy and, while the filing itself was largely expected, the timing came as a surprise to the market. As a result, prices of AMR’s equity and bond offerings declined. We anticipate that many of AMR’s obligations will be maintained through the bankruptcy period, and many of them will either be restructured or resolved at prices that are currently reflected by the market and already incorporated into the Fund’s net asset values. Investors should also know that we would not expect this bankruptcy to be resolved in the short term. These proceedings—as exemplified by past filings, most notably Northwest Airlines in 2005—can take 2 years or more to be fully resolved.

As of July 31, 2012, the Fund was invested in the hospital/healthcare sector, representing 5.9% of the Fund’s total assets. Our holdings in this sector consist of securities across the credit spectrum. The sector remained in the news this reporting period as many politicians, lobbyists, activists and others continued to argue about the constitutionality of the Affordable Care Act of 2010. On June 28, 2012, the Supreme Court upheld the “individual mandate,” which was considered the most controversial element of the Act. Immediately after the court’s ruling, some politicians suggested that Congress would revisit and perhaps seek to override the legislation. However, none of these developments has changed our perspective that our disciplined, security-specific approach to credit research can uncover many potentially advantageous opportunities for the Fund in this and other sectors. The hospital/health care sector contributed positively to the Fund’s total return this reporting period.


13				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

FUND PERFORMANCE DISCUSSION

During this reporting period, the Fund remained invested in municipal inverse-floating rate securities, which are tax-exempt securities with interest payments that move inversely to changes in short-term interest rates. “Inverse floaters” generally offer higher tax-free yields than fixed-rate bonds of comparable maturity and credit quality, but they face greater price volatility, too. In periods of low short-term interest rates, inverse floaters generally offer very attractive levels of tax-free income. These securities contributed positively to the Fund’s total return this reporting period.

Our approach to municipal bond investing is flexible and responsive to market conditions. Shareholders should note that market conditions during this reporting period did not affect the Fund’s overall investment objectives or cause it to pay any capital gain distributions. In closing, we believe that the Fund’s structure and sector composition–as well as our time-tested strategies–will continue to benefit long-term investors through interest rate and economic cycles.

Comparing the Fund’s Performance to the Market. The graphs that follow show the performance of a hypothetical $10,000 investment in each class of shares of the Fund held until July 31, 2012. In the case of Class A, Class B and Class C shares, performance is measured over a ten-year period. In the case of Class Y shares, performance is measured from inception of the Class on November 29, 2010. The Fund’s performance reflects the deduction of the maximum initial sales charge on Class A shares, the applicable contingent deferred sales charge on Class B and Class C shares, and reinvestments of all dividends and capital gains distributions. Past performance cannot guarantee future results.

The Fund’s performance is compared to the performance of the Barclays Capital Municipal Bond Index, an unmanaged index of a broad range of investment grade municipal bonds that is widely regarded as a measure of the performance of the general municipal bond market. Index performance reflects the reinvestment of income but does not consider the effect of transaction costs, and none of the data in the graphs shows the effect of taxes. The Fund’s performance is also compared to the Consumer Price Index, a non-securities index that measures changes in the inflation rate. The Fund’s performance reflects the effects of the Fund’s business and operating expenses. While index comparisons may be useful to provide a benchmark for the Fund’s performance, it must be noted that the Fund’s investments are not limited to the investments comprising the index.


14				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

Class A Shares

Comparison of Change in Value of $10,000 Hypothetical Investments in:

LOGO

Average Annual Total Returns of Class A Shares With Sales Charge of the Fund at 7/31/12

1-Year 14.59% 5-Year 0.58% 10-Year 3.80%

The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individual’s investment. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677). Fund returns include changes in share price, reinvested distributions, and the applicable sales charge for Class A shares, the current maximum initial sales charge of 4.75%; for Class B shares, and the contingent deferred sales charge of 5% (1-year) and 2% (5-year); and for Class C shares, the 1% contingent deferred sales charge for the 1-year period. There is no sales charge for Class Y shares. Because Class B shares convert to Class A shares 72 months after purchase, the 10-year return for Class B shares uses Class A performance for the period after conversion. See page 19 for further information.


15				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

FUND PERFORMANCE DISCUSSION

Class B Shares

Comparison of Change in Value of $10,000 Hypothetical Investments in:

LOGO

Average Annual Total Returns of Class B Shares With Sales Charge of the Fund at 7/31/12

1-Year 14.26% 5-Year 0.40% 10-Year 3.82%


16				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

Class C Shares

Comparison of Change in Value of $10,000 Hypothetical Investments in:

LOGO

Average Annual Total Returns of Class C Shares With Sales Charge of the Fund at 7/31/12

1-Year 18.31% 5-Year 0.78% 10-Year 3.51%


17				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

FUND PERFORMANCE DISCUSSION

Class Y Shares

Comparison of Change in Value of $10,000 Hypothetical Investments in:

LOGO

Average Annual Total Returns of Class Y Shares of the Fund at 7/31/12

1-Year 20.43% Since Inception (11/29/10) 15.34%


18				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

NOTES

Total returns include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. Cumulative total returns are not annualized. The Fund’s total returns shown do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares. This annual report must be preceded or accompanied by the current prospectus of Oppenheimer California Municipal Fund. Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc.

Class A shares of the Fund were first publicly offered on 11/3/88. Unless otherwise noted, Class A returns include the current maximum initial sales charge of 4.75%.

Class B shares of the Fund were first publicly offered on 5/3/93. Unless otherwise noted, Class B returns include the applicable contingent deferred sales charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to Class A shares 72 months after purchase, the 10-year return for Class B shares uses Class A performance for the period after conversion. Class B shares are subject to an annual 0.75% asset-based sales charge.

Class C shares of the Fund were first publicly offered on 11/1/95. Unless otherwise noted, Class C returns include the applicable 1% contingent deferred sales charge for the 1-year period. Class C shares are subject to an annual 0.75% asset-based sales charge.

Class Y shares of the Fund were first publicly offered on 11/29/10. Class Y shares are offered only to fee-based clients of dealers that have a special agreement with the Distributor, to certain institutional investors under a special agreement with the Distributor, and to present or former officers, directors, trustees and employees (and their eligible family members) of the Fund, the Manager, its affiliates, its parent company and the subsidiaries of its parent company, and retirement plans established for the benefit of such individuals. There is no sales charge for Class Y shares.


19				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

FUND EXPENSES

Fund Expenses. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended July 31, 2012.

Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and 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 the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the “hypothetical” section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


20				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Actual	Beginning Account Value February 1, 2012		Ending Account Value July 31, 2012		Expenses Paid During 6 Months Ended July 31, 2012
Class A	$	1,000.00	$	1,088.90	$	4.58
Class B		1,000.00		1,084.40		8.85
Class C		1,000.00		1,083.80		8.58
Class Y		1,000.00		1,090.20		3.28

Hypothetical (5% return before expenses)
Class A		1,000.00		1,020.49		4.43
Class B		1,000.00		1,016.41		8.56
Class C		1,000.00		1,016.66		8.31
Class Y		1,000.00		1,021.73		3.17

Expenses are equal to the Fund’s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Those annualized expense ratios based on the 6-month period ended July 31, 2012 are as follows:


Class	Expense Ratios
Class A		0.88	%
Class B		1.70
Class C		1.65
Class Y		0.63

The expense ratios reflect voluntary waivers and/or reimbursements of expenses by the Fund’s Manager. Some of these undertakings may be modified or terminated at any time, as indicated in the Fund’s prospectus. The “Financial Highlights” tables in the Fund’s financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable.


21				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF INVESTMENTS July 31, 2012


Principal Amount			Coupon			Maturity		Value
	Municipal Bonds and Notes—109.0%
	California—101.5%
	$ 100,000	Adelanto, CA Elementary School District Community Facilities District No. 1		4.900	%		09/01/2014	$	95,700
	2,675,000	Adelanto, CA Elementary School District Community Facilities District No. 1		5.250			09/01/2026		2,187,080
	7,310,000	Adelanto, CA Elementary School District Community Facilities District No. 1		5.350			09/01/2036		5,408,450
	1,990,000	Adelanto, CA Elementary School District Community Facilities District No. 1		5.400			09/01/2036		1,483,127
	55,000	Adelanto, CA Improvement Agency, Series B		5.500			12/01/2023		55,058
	1,125,000	Adelanto, CA Public Utility Authority		6.750			07/01/2039		1,237,489
	2,000,000	Agua Mansa, CA Industrial Growth Assoc. Special Tax		6.500			09/01/2033		2,042,160
	1,640,000	Alhambra, CA (Atherton Baptist Homes)¹		7.500			01/01/2030		1,826,894
	1,000,000	Alhambra, CA (Atherton Baptist Homes)¹		7.625			01/01/2040		1,110,260
	25,000	Alvord, CA Unified School District Community Facilities District		5.875			09/01/2034		25,006
	100,000	Alvord, CA Unified School District Community Facilities District Special Tax		4.500			09/01/2017		102,094
	1,295,000	Alvord, CA Unified School District Community Facilities District Special Tax		5.000			09/01/2036		1,233,980
	1,580,000	Alvord, CA Unified School District Community Facilities District Special Tax		5.000			09/01/2036		1,505,550
	945,000	Anaheim, CA Community Facilities District Special Tax (Platinum Triangle)		6.125			09/01/2031		974,182
	955,000	Anaheim, CA Community Facilities District Special Tax (Platinum Triangle)		6.125			09/01/2032		984,443
	1,380,000	Anaheim, CA Community Facilities District Special Tax (Platinum Triangle)		6.250			09/01/2040		1,422,407
	3,000,000	Anaheim, CA Public Financing Authority (Anaheim Electric System Distribution)²		5.250			10/01/2034		3,412,020
	7,000,000	Anaheim, CA Public Financing Authority (Anaheim Electric System Distribution)²		5.250			10/01/2039		7,961,380
	500,000	Arvin, CA Community Redevel. Agency		5.000			09/01/2025		500,260
	2,435,000	Arvin, CA Community Redevel. Agency		5.125			09/01/2035		2,301,124
	600,000	Arvin, CA Community Redevel. Agency Tax Allocation		6.500			09/01/2038		623,412
	955,000	Azusa, CA Special Tax Community Facilities District No. 05-1		5.000			09/01/2021		964,770
	955,000	Bakersfield, CA Improvement Bond Act 1915		5.000			09/02/2027		854,037
	810,000	Bakersfield, CA Improvement Bond Act 1915		5.125			09/02/2026		803,147
	465,000	Bakersfield, CA Improvement Bond Act 1915		5.350			09/02/2022		458,499
	1,260,000	Bakersfield, CA Improvement Bond Act 1915		5.400			09/02/2025		1,217,740


22				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 1,630,000	Bakersfield, CA Improvement Bond Act 1915		7.375	%		09/02/2028	$	1,680,237
	10,000,000	Bay Area CA Toll Authority (San Francisco Bay Area)²		5.250			12/01/2035		11,944,700
	10,000,000	Bay Area CA Toll Authority (San Francisco Bay Area)²		5.500			04/01/2043		11,538,400
	10,000,000	Bay Area CA Toll Authority (San Francisco Bay Area)²		5.625			04/01/2044		11,591,400
	115,000	Beaumont, CA Financing Authority, Series A		5.125			09/01/2028		119,353
	120,000	Beaumont, CA Financing Authority, Series A		5.250			09/01/2029		124,661
	2,700,000	Beaumont, CA Financing Authority, Series A		5.350			09/01/2036		2,711,880
	250,000	Beaumont, CA Financing Authority, Series A		5.625			09/01/2032		261,943
	4,410,000	Beaumont, CA Financing Authority, Series A		5.875			09/01/2042		4,623,444
	1,500,000	Beaumont, CA Financing Authority, Series A		6.375			09/01/2042		1,603,830
	1,050,000	Beaumont, CA Financing Authority, Series A		6.875			09/01/2036		1,117,862
	5,000	Beaumont, CA Financing Authority, Series A		7.000			09/01/2023		5,011
	685,000	Beaumont, CA Financing Authority, Series B		5.000			09/01/2027		686,178
	3,170,000	Beaumont, CA Financing Authority, Series B		5.050			09/01/2037		3,014,195
	185,000	Beaumont, CA Financing Authority, Series B		5.400			09/01/2035		188,128
	1,525,000	Beaumont, CA Financing Authority, Series B		6.000			09/01/2034		1,567,593
	500,000	Beaumont, CA Financing Authority, Series B		6.000			09/01/2034		515,145
	450,000	Beaumont, CA Financing Authority, Series B		8.625			09/01/2039		464,562
	225,000	Beaumont, CA Financing Authority, Series B		8.875			09/01/2034		232,349
	2,340,000	Beaumont, CA Financing Authority, Series C		5.500			09/01/2035		2,362,300
	2,000,000	Beaumont, CA Financing Authority, Series D		5.800			09/01/2035		2,054,620
	3,245,000	Beaumont, CA Financing Authority, Series E		6.250			09/01/2038		3,295,557
	500,000	Blythe, CA Community Facilities District Special Tax (Hidden Beaches)		5.300			09/01/2035		459,700
	30,000	Blythe, CA Redevel. Agency (Redevel. Project No. 1 Tax Allocation)		5.650			05/01/2029		30,440
	2,300,000	Blythe, CA Redevel. Agency (Redevel. Project No. 1 Tax Allocation)		9.750			05/01/2038		2,721,452
	1,010,000	Brea, CA Redevel. Agency		6.595	³		08/01/2031		297,698
	1,560,000	Brea, CA Redevel. Agency		6.716	³		08/01/2032		422,776
	2,300,000	Brea, CA Redevel. Agency		6.835	³		08/01/2033		570,423
	7,430,000	Brentwood, CA Infrastructure Financing Authority		5.200			09/02/2036		6,523,317
	25,000	Buena Park, CA Special Tax (Park Mall)		6.100			09/01/2028		25,433
	5,000,000	Burbank Glendale Pasadena, CA Airport Authority¹		5.000			07/01/2042		5,344,550
	60,000	Butte County, CA Hsg. Authority (Affordable Hsg. Pool)		7.000			10/01/2020		60,128
	3,000,000	CA ABAG Finance Authority for NonProfit Corporations (Casa De Las Campanas)¹		6.000			09/01/2037		3,416,370


23				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 1,300,000	CA ABAG Finance Authority for NonProfit Corporations (Odd Fellows Home of California)¹		5.200	%		11/15/2022	$	1,306,656
	605,000	CA ABAG Finance Authority for NonProfit Corporations (Odd Fellows Home of California)¹		5.350			11/15/2032		607,105
	65,000	CA ABAG Finance Authority for NonProfit Corporations (Redding Assisted Living Corp.)		5.250			11/15/2031		61,525
	10,000	CA ABAG Finance Authority for NonProfit Corporations COP (Merced Family Health Centers)¹		5.950			01/01/2024		10,020
	25,000	CA ABAG Finance Authority for NonProfit Corporations COP (Palo Alto Gardens Apartments)¹		5.350			10/01/2029		25,021
	3,300,000	CA ABAG Finance Authority for NonProfit Corporations COP (Redwood Senior Homes & Services)¹		6.125			11/15/2032		3,341,316
	75,000	CA Affordable Hsg. Agency (Merced County Hsg. Authority)		6.000			01/01/2023		75,230
	20,000	CA Bay Area Government Association		4.125			09/01/2019		20,192
	8,500,000	CA Communities Transportation Revenue COP¹		5.250			06/01/2042		9,266,105
	2,845,000	CA Communities Transportation Revenue COP¹		6.000			06/01/2042		3,191,720
	6,530,000	CA County Tobacco Securitization Agency¹		5.000			06/01/2047		4,986,569
	39,700,000	CA County Tobacco Securitization Agency		5.750	³		06/01/2057		477,988
	15,295,000	CA County Tobacco Securitization Agency		5.820	³		06/01/2033		1,593,739
	45,600,000	CA County Tobacco Securitization Agency		6.125	³		06/01/2057		464,664
	82,110,000	CA County Tobacco Securitization Agency		6.423	³		06/01/2046		2,970,740
	51,500,000	CA County Tobacco Securitization Agency		6.700	³		06/01/2057		444,445
	55,250,000	CA County Tobacco Securitization Agency		6.901	³		06/01/2057		385,645
	71,700,000	CA County Tobacco Securitization Agency		7.000	³		06/01/2055		896,967
	347,900,000	CA County Tobacco Securitization Agency		7.550	³		06/01/2055		3,030,209
	409,500,000	CA County Tobacco Securitization Agency		8.251	³		06/01/2055		3,566,745
	850,000	CA County Tobacco Securitization Agency (TASC)¹		5.100			06/01/2028		745,178
	9,815,000	CA County Tobacco Securitization Agency (TASC)¹		5.125			06/01/2038		8,139,874
	3,725,000	CA County Tobacco Securitization Agency (TASC)¹		5.125			06/01/2038		3,091,676
	7,315,000	CA County Tobacco Securitization Agency (TASC)¹		5.250			06/01/2045		5,864,509
	6,000,000	CA County Tobacco Securitization Agency (TASC)		5.250			06/01/2046		4,345,620
	8,000,000	CA County Tobacco Securitization Agency (TASC)¹		5.450			06/01/2028		7,242,320
	25,315,000	CA County Tobacco Securitization Agency (TASC)¹		5.600			06/01/2036		22,265,302
	20,985,000	CA County Tobacco Securitization Agency (TASC)¹		5.650			06/01/2041		18,305,635
	28,470,000	CA County Tobacco Securitization Agency (TASC)¹		5.700			06/01/2046		24,506,976
	4,375,000	CA County Tobacco Securitization Agency (TASC)¹		5.750			06/01/2029		4,362,925
	9,960,000	CA County Tobacco Securitization Agency (TASC)¹		5.875			06/01/2035		9,959,004
	1,510,000	CA County Tobacco Securitization Agency (TASC)¹		5.875			06/01/2043		1,498,162
	10,700,000	CA County Tobacco Securitization Agency (TASC)¹		6.000			06/01/2035		10,699,144


24				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Principal Amount				Coupon			Maturity		Value
	California Continued
	$ 16,875,000	CA County Tobacco Securitization Agency (TASC)¹			6.000	%		06/01/2042	$	16,755,188
	9,440,000	CA County Tobacco Securitization Agency (TASC)¹			6.125			06/01/2038		9,439,811
	75,000	CA County Tobacco Securitization Agency (TASC)¹			6.125			06/01/2043		75,002
	5,155,000	CA County Tobacco Securitization Agency (TASC)¹			6.250			06/01/2037		5,155,722
	86,970,000	CA County Tobacco Securitization Agency (TASC)			6.375	³		06/01/2046		4,805,093
	65,800,000	CA County Tobacco Securitization Agency (TASC)			6.600	³		06/01/2046		2,437,232
	4,405,000	CA Educational Facilities Authority (California College of Arts & Crafts)¹			5.000			06/01/2035		4,453,367
	360,000	CA Educational Facilities Authority (California College of Arts & Crafts)¹			5.750			06/01/2025		360,493
	385,000	CA Educational Facilities Authority (California College of Arts & Crafts)¹			5.875			06/01/2030		385,493
	5,000,000	CA Educational Facilities Authority (Chapman University)¹			5.000			04/01/2031		5,589,950
	1,250,000	CA Educational Facilities Authority (San Francisco University)¹			6.125			10/01/2036		1,532,513
	2,500,000	CA Enterprise Devel. Authority (Sunpower Corp.)			8.500			04/01/2031		2,900,750
	10,000	CA GO¹			5.000			10/01/2023		10,033
	7,800,000	CA GO¹			5.000			02/01/2038		8,569,938
	5,000	CA GO¹			5.125			06/01/2031		5,016
	35,000	CA GO¹			5.250			06/01/2021		35,518
	10,000,000	CA GO¹			5.250			04/01/2035		11,437,500
	5,000	CA GO¹			5.500			10/01/2022		5,038
	1,500,000	CA GO¹			6.000			03/01/2033		1,850,670
	60,000	CA GO¹			6.250			10/01/2019		60,559
	200,000	CA GO¹			6.250			10/01/2019		201,864
	10,000,000	CA GO¹	��		6.500			04/01/2033		12,508,100
	14,000,000	CA Golden State Tobacco Securitization Corp. (TASC)¹			0.000	⁴		06/01/2037		11,057,760
	8,500,000	CA Golden State Tobacco Securitization Corp. (TASC)¹			5.000			06/01/2029		8,509,010
	20,000,000	CA Golden State Tobacco Securitization Corp. (TASC)¹			5.125			06/01/2047		15,295,400
	2,030,000	CA Health Facilities Financing Authority (Community Programs for Persons with Developmental Disabilities)¹			6.250			02/01/2026		2,390,812
	405,000	CA Health Facilities Financing Authority (Hospital of the Good Samaritan)¹			7.000			09/01/2021		405,360
	1,570,000	CA Health Facilities Financing Authority (Northern California Presbyterian Homes & Services)¹			5.125			07/01/2018		1,572,355
	14,215,000	CA Health Facilities Financing Authority (Providence Health & Service/Provident Health System-Oregon Obligated Group)²			5.500			10/01/2039		16,259,054
	160,000	CA Health Facilities Financing Authority (Providence Health System-Southern California)¹			6.250			10/01/2028		191,307


25				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 5,000,000	CA Health Facilities Financing Authority (Scripps Health)¹		5.000	%		11/15/2040	$	5,508,800
	5,000,000	CA Health Facilities Financing Authority (SJHS/SJHCN/SJHE/SJHO Obligated Group)¹		5.750			07/01/2039		5,783,650
	13,500,000	CA Health Facilities Financing Authority (Sutter Health)¹		5.250			08/15/2031		15,525,675
	25,000	CA HFA (Multifamily Hsg.)¹		5.375			08/01/2028		25,010
	920,000	CA HFA (Multifamily Hsg.)¹		5.950			08/01/2028		920,708
	2,395,000	CA HFA (Multifamily Hsg.)		6.050			08/01/2027		2,410,424
	400,000	CA HFA (Multifamily Hsg.), Series A¹		5.900			02/01/2028		400,476
	95,000	CA HFA (Multifamily Hsg.), Series B¹		5.500			08/01/2039		95,003
	4,045,000	CA HFA, Series C¹		5.750			08/01/2030		4,219,704
	190,000	CA HFA, Series E¹		5.000			02/01/2024		192,033
	1,400,000	CA Independent Cities Finance Authority (Augusta Communities Mobile Home Park)⁵		5.000			05/15/2039		1,449,224
	1,000,000	CA Independent Cities Finance Authority Mobile Home Park (Lamplighter Salinas)¹		6.250			07/15/2045		1,082,560
	715,000	CA Independent Cities Finance Authority Mobile Home Park (Rancho Del Sol & Grandview)¹		5.250			05/15/2037		740,411
	1,000,000	CA Independent Cities Finance Authority Mobile Home Park (Rancho Del Sol & Grandview)¹		5.500			05/15/2047		1,046,610
	40,000	CA Independent Cities Lease Finance Authority (Caritas Affordable Hsg.)¹		5.375			08/15/2040		40,258
	110,000	CA Lee Lake Water District Community Facilities District No. 1 (Sycamore Creek)		6.000			09/01/2033		113,568
	10,000,000	CA M-S-R Energy Authority¹		6.500			11/01/2039		12,673,100
	65,000	CA M-S-R Public Power Agency (San Juan)		6.000			07/01/2022		71,824
	10,000	CA MobileHome Park Financing Authority (Palomar Estates East & West)		5.100			09/15/2023		10,155
	200,000	CA Municipal Finance Authority (Biola University)¹		5.625			10/01/2023		217,378
	250,000	CA Municipal Finance Authority (Casa Griffin Apts.)¹		5.750			10/01/2034		264,955
	1,000,000	CA Municipal Finance Authority (Emerson College)¹		5.750			01/01/2033		1,169,090
	1,000,000	CA Municipal Finance Authority (Emerson College)¹		6.000			01/01/2042		1,181,880
	850,000	CA Municipal Finance Authority (Goodwill Sacramento Valley & Northern Nevada)		5.750			01/01/2022		876,818
	1,070,000	CA Municipal Finance Authority (Goodwill Sacramento Valley & Northern Nevada)		6.625			01/01/2032		1,102,464
	2,135,000	CA Municipal Finance Authority (Goodwill Sacramento Valley & Northern Nevada)		6.875			01/01/2042		2,199,050
	1,000,000	CA Municipal Finance Authority (INSD-Lincoln Glen Manor for Senior Citizens)¹		6.000			04/01/2031		1,096,160


26				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 1,500,000	CA Municipal Finance Authority (OCEAA)		7.000	%		10/01/2039	$	1,547,400
	1,750,000	CA Municipal Finance Authority (Pilgrim Place Claremont)¹		5.875			05/15/2029		1,972,075
	1,000,000	CA Municipal Finance Authority (Pilgrim Place Claremont)¹		6.125			05/15/2039		1,118,870
	600,000	CA Municipal Finance Authority (Southwestern Law School)¹		6.500			11/01/2031		731,862
	1,250,000	CA Municipal Finance Authority (Southwestern Law School)¹		6.500			11/01/2041		1,493,275
	5,000,000	CA Municipal Finance Authority Mobile Home Park (Caritas Acquisitions)¹		5.500			08/15/2047		5,255,800
	1,400,000	CA Pollution Control Financing Authority (Sacramento Biosolids Facility)		5.500			12/01/2024		1,203,748
	955,000	CA Pollution Control Financing Authority (San Diego Gas & Electric Company)¹		5.850			06/01/2021		958,304
	85,000	CA Pollution Control Financing Authority (San Diego Gas & Electric Company)¹		5.850			06/01/2021		85,294
	2,000,000	CA Public Works¹		5.000			04/01/2037		2,166,440
	2,795,000	CA Public Works¹		5.750			03/01/2030		3,197,592
	2,500,000	CA Public Works¹		6.000			03/01/2035		2,963,325
	365,000	CA Public Works¹		6.125			11/01/2029		437,620
	8,370,000	CA Public Works¹		6.375			11/01/2034		10,182,691
	6,550,000	CA Public Works¹		6.625			11/01/2034		8,088,792
	2,000,000	CA Public Works (California State Prisons)¹		5.750			10/01/2031		2,310,280
	735,000	CA Public Works (Dept. of Corrections)¹		5.250			06/01/2028		783,833
	6,300,000	CA Public Works (Dept. of General Services)¹		5.000			12/01/2027		6,386,121
	900,000	CA Public Works (Dept. of Health Services)¹		5.500			11/01/2015		903,510
	900,000	CA Public Works (Dept. of Mental Health)¹		5.000			11/01/2031		944,307
	2,500,000	CA Public Works (Judicial Council)¹		5.000			12/01/2031		2,747,150
	125,000	CA Public Works (Trustees California State University)¹		6.000			04/01/2027		148,206
	2,455,000	CA Rural Home Mtg. Finance Authority (Single Family Mtg.)¹		5.500			08/01/2047		1,406,813
	305,000	CA Rural Home Mtg. Finance Authority (Single Family Mtg.)¹		5.500			08/01/2047		148,215
	17,650,000	CA Silicon Valley Tobacco Securitization Authority		5.850	³		06/01/2047		895,208
	165,000,000	CA Silicon Valley Tobacco Securitization Authority		6.300	³		06/01/2056		1,519,650
	100,000,000	CA Silicon Valley Tobacco Securitization Authority		6.850	³		06/01/2056		761,000
	36,465,000	CA Silicon Valley Tobacco Securitization Authority		7.663	³		06/01/2041		3,090,773
	108,920,000	CA Silicon Valley Tobacco Securitization Authority		8.597	³		06/01/2036		15,168,199
	575,000	CA State University¹		5.000			11/01/2030		591,077
	95,000	CA Statewide CDA		5.000			09/02/2018		96,540


27				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 135,000	CA Statewide CDA		5.000	%		09/02/2019	$	135,234
	235,000	CA Statewide CDA		5.125			09/02/2020		233,226
	2,855,000	CA Statewide CDA		5.125			09/02/2025		2,664,914
	8,070,000	CA Statewide CDA		5.200			09/02/2036		6,818,585
	100,000	CA Statewide CDA		6.527	³		09/01/2028		34,877
	75,000	CA Statewide CDA		6.625			09/01/2027		75,092
	50,000	CA Statewide CDA		6.750			09/01/2037		51,042
	100,000	CA Statewide CDA		6.773	³		09/01/2034		21,805
	15,000	CA Statewide CDA		7.000			07/01/2022		15,025
	75,000	CA Statewide CDA (East Campus Apartments)		5.625			08/01/2034		75,000
	1,350,000	CA Statewide CDA (East Tabor Apartments)		6.850			08/20/2036		1,406,957
	1,000,000	CA Statewide CDA (Enloe Medical Center)¹		5.750			08/15/2038		1,109,160
	1,250,000	CA Statewide CDA (Enloe Medical Center)¹		6.250			08/15/2033		1,429,425
	60,000	CA Statewide CDA (GP Steinbeck)		5.492	³		03/20/2022		34,701
	1,000,000	CA Statewide CDA (Huntington Park Charter School)		5.250			07/01/2042		854,590
	1,145,000	CA Statewide CDA (International School Peninsula)		5.000			11/01/2025		1,140,523
	1,000,000	CA Statewide CDA (International School Peninsula)		5.000			11/01/2029		984,030
	10,000,000	CA Statewide CDA (Kaiser Permanente)¹		5.000			04/01/2042		10,975,500
	75,000	CA Statewide CDA (Lincoln Apartments)¹		5.350			09/20/2036		75,567
	2,750,000	CA Statewide CDA (Live Oak School)		6.750			10/01/2030		2,766,583
	2,500,000	CA Statewide CDA (Lodi Memorial Hospital)¹		5.000			12/01/2027		2,635,575
	2,019,578	CA Statewide CDA (Microgy Holdings)⁶		9.000			12/01/2038		18,863
	6,015,000	CA Statewide CDA (Mountain Shadows Community)		5.000			07/01/2031		5,498,612
	1,130,000	CA Statewide CDA (Napa Valley Hospice)		7.000			01/01/2034		1,074,743
	1,125,000	CA Statewide CDA (Notre Dame de Namur University)		6.500			10/01/2023		1,141,369
	4,635,000	CA Statewide CDA (Notre Dame de Namur University)		6.625			10/01/2033		4,687,561
	1,935,000	CA Statewide CDA (Quail Ridge Apartments)⁶		0.000			07/01/2032		1,556,862
	30,000	CA Statewide CDA (Quail Ridge Apartments)¹		5.375			07/01/2032		25,056
	1,290,000	CA Statewide CDA (Quail Ridge Apartments)¹		6.500			07/01/2032		1,057,968
	425,000	CA Statewide CDA (Rio Bravo)		6.500			12/01/2018		413,529
	220,000	CA Statewide CDA (Stonehaven Student Hsg.)		5.875			07/01/2032		220,405
	60,000	CA Statewide CDA COP (Children’s Hospital Los Angeles)¹		5.250			08/15/2029		60,040
	165,000	CA Statewide CDA COP (Internext Group)¹		5.375			04/01/2030		165,464
	2,000,000	CA Statewide CDA School Facilities (47th & Main)¹		6.375			07/01/2047		2,134,260
	220,000	CA Statewide CDA Special Tax Community Facilities District No. 97		6.842	³		09/01/2022		128,806
	9,690,000	CA Statewide CDA, Series A		5.150			09/02/2037		8,029,425


28				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 5,660,000	CA Statewide CDA, Series B		6.250	%		09/02/2037	$	5,696,281
	45,175,000	CA Statewide Financing Authority Tobacco Settlement		6.375	³		06/01/2046		1,781,250
	220,000,000	CA Statewide Financing Authority Tobacco Settlement		7.876	³		06/01/2055		1,916,200
	25,000	CA Statewide Financing Authority Tobacco Settlement (TASC)¹		6.000			05/01/2037		25,002
	8,295,000	CA Statewide Financing Authority Tobacco Settlement (TASC)¹		6.000			05/01/2037		8,295,747
	14,035,000	CA Statewide Financing Authority Tobacco Settlement (TASC)¹		6.000			05/01/2043		13,936,053
	15,985,000	CA Statewide Financing Authority Tobacco Settlement (TASC)¹		6.000			05/01/2043		15,872,306
	1,360,000	CA Valley Sanitation District		5.200			09/02/2030		1,285,268
	80,000	CA Western Hills Water District Special Tax		5.000			09/01/2014		75,205
	25,000	CA Western Hills Water District Special Tax		5.200			09/01/2019		19,403
	105,000	CA Western Hills Water District Special Tax (Diablo Grande Community Facilities)		6.000			09/01/2024		76,306
	4,495,000	CA Western Hills Water District Special Tax (Diablo Grande Community Facilities)		6.125			09/01/2031		2,979,241
	300,000	CA Western Hills Water District Special Tax (Diablo Grande Community Facilities)		6.700			09/01/2020		249,387
	90,000	CA Western Hills Water District Special Tax (Diablo Grande Community Facilities)		6.750			09/01/2022		72,300
	3,695,000	CA Western Hills Water District Special Tax (Diablo Grande Community Facilities)		6.875			09/01/2031		2,672,889
	10,000	CA William S. Hart Joint School Financing Authority¹		5.600			09/01/2023		10,015
	10,000	CA William S. Hart Union School District		6.000			09/01/2033		10,108
	2,500,000	Calexico, CA Community Facilities District No. 2005-1 Special Tax (Hearthstone)		5.500			09/01/2036		862,425
	2,325,000	Calexico, CA Community Facilities District No. 2005-1 Special Tax (Hearthstone)		5.550			09/01/2036		801,637
	35,000	Calexico, CA Community Redevel. Agency Tax Allocation (Central Business District & Residential Redevel.)¹		7.250			08/01/2033		39,276
	25,000	Campbell, CA (Civic Center) COP¹		5.125			10/01/2019		25,094
	225,000	Campbell, CA (Civic Center) COP		5.250			10/01/2028		225,803
	25,000	Carlsbad, CA Improvement Bond Act 1915		5.500			09/02/2028		25,022
	100,000	Carson, CA Public Financing Authority (Remediation)¹		6.500			10/01/2036		114,399
	1,500,000	Carson, CA Redevel. Agency Tax Allocation¹		7.000			10/01/2036		1,758,000
	4,510,000	Castaic, CA Union School District Community Facilities District No. 92-1		9.000			10/01/2019		4,544,502
	45,000	Chino, CA Community Facilities District Special Tax		5.950			09/01/2033		45,405


29				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 995,000	Chino, CA Community Facilities District Special Tax No. 2005-1		5.000	%		09/01/2023	$	1,006,074
	1,615,000	Chino, CA Community Facilities District Special Tax No. 2005-1		5.000			09/01/2027		1,613,240
	2,500,000	Chino, CA Community Facilities District Special Tax No. 2005-1		5.000			09/01/2036		2,334,125
	2,175,000	Chowchilla, CA Community Facilities Sales Tax District		5.000			09/01/2037		2,067,577
	1,455,000	Chowchilla, CA Redevel. Agency		5.000			08/01/2037		1,318,361
	2,000,000	Chula Vista, CA Industrial Devel. (San Diego Gas & Electric Company)¹		5.875			01/01/2034		2,350,760
	11,360,000	Citrus, CA Community College District²		5.500			06/01/2031		13,197,594
	2,265,000	Clovis, CA Public Financing Authority¹		5.000			03/01/2027		2,267,605
	1,650,000	Colton, CA Community Facilities District Special Tax		7.500			09/01/2020		1,653,614
	3,715,000	Compton, CA Community College District¹		6.750			08/01/2034		4,242,084
	7,000,000	Compton, CA Public Finance Authority¹		5.250			09/01/2027		5,892,530
	5,000	Contra Costa County, CA Public Financing Authority Tax Allocation¹		5.850			08/01/2033		5,014
	4,870,000	Corcoran, CA Hospital District¹		8.000			08/01/2034		5,596,945
	965,000	Corona, CA Community Facilities District (Buchanan Street)		5.150			09/01/2036		972,720
	250,000	Corona-Norco, CA Unified School District		6.000			09/01/2037		256,355
	975,000	Daly City, CA Hsg. Devel. Finance Agency (Third Tier Franciscan)		6.500			12/15/2047		998,819
	1,300,000	Dehesa, CA School District¹		5.250			08/01/2043		1,445,886
	1,855,000	Desert Hot Springs, CA Community Facilities District Special Tax		6.375			09/01/2038		1,962,683
	3,725,000	Desert Hot Springs, CA Redevel. Agency Tax Allocation¹		7.375			09/01/2039		4,470,484
	1,000,000	Downey, CA Community Devel. Commission Tax Allocation (Downey Redevel.)¹		5.125			08/01/2028		1,000,150
	15,000,000	East Bay, CA Municipal Utility District (Water System)²		5.000			06/01/2036		17,553,450
	6,875,000	East Bay, CA Municipal Utility District (Water System)¹		5.000			06/01/2037		7,866,581
	200,000	Eastern CA Municipal Water District Community Facilities Special Tax		5.000			09/01/2030		201,060
	340,000	Eastern CA Municipal Water District Community Facilities Special Tax		5.000			09/01/2037		330,517
	200,000	Eastern CA Municipal Water District Community Facilities Special Tax		5.100			09/01/2037		197,206
	2,500,000	Eastern CA Municipal Water District Community Facilities Special Tax		5.125			09/01/2042		2,530,325


30				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 3,740,000	Eastern CA Municipal Water District Community Facilities Special Tax		5.250	%		09/01/2035	$	3,594,776
	50,000	Eastern CA Municipal Water District Community Facilities Special Tax (Barrington Heights)		5.125			09/01/2035		49,897
	1,500,000	Eastern CA Municipal Water District Community Facilities Special Tax (Crown Valley Village)		5.625			09/01/2034		1,473,870
	425,000	Eastern CA Municipal Water District Community Facilities Special Tax No. 2003-25		5.000			09/01/2036		413,950
	20,000	Eastern CA Municipal Water District Community Facilities Special Tax No. 2004-26		5.000			09/01/2025		20,311
	8,000,000	El Dorado, CA Irrigation District COP¹		5.750			08/01/2039		8,728,560
	2,770,000	Escondido, CA Joint Powers Financing Authority (Reidy Creek)¹		5.125			09/01/2030		2,772,604
	25,000	Etiwanda, CA School District Special Tax		5.400			09/01/2035		25,078
	10,300,000	Etiwanda, CA School District Special Tax Community Facilities District No. 2004-2		6.000			09/01/2037		10,335,123
	1,000,000	Fairfield, CA Community Facilities District Special Tax (Fairfield Commons)		6.875			09/01/2038		1,050,210
	100,000	Fillmore, CA Public Financing (Central City Redevel.)		5.500			06/01/2031		98,380
	5,050,000	Folsom, CA Special Tax Community Facilities District No. 31		5.000			09/01/2036		4,812,044
	2,500,000	Fontana, CA Public Financing Authority (North Fontana Redevel.)¹		5.500			09/01/2032		2,554,825
	10,000	Fontana, CA Redevel. Agency (Jurupa Hills)¹		5.500			10/01/2027		10,021
	10,000,000	Foothill, CA De Anza Community College District²		5.000			08/01/2040		11,588,600
	20,000	Fremont, CA Community Facilities District (Pacific Commons)		6.250			09/01/2026		20,025
	175,000	Fresno, CA Unified School District Education Center¹		5.000			08/01/2027		186,884
	1,010,000	Greenfield, CA Union School District		7.000			09/01/2040		1,041,603
	5,145,000	Grossmont, CA Union High School District²		5.500			08/01/2030		6,069,930
	4,895,000	Grossmont, CA Union High School District²		5.500			08/01/2031		5,725,599
	10,000,000	Grossmont, CA Union High School District²		5.500			08/01/2045		11,786,700
	1,015,000	Healdsburg, CA Community Redevel. Agency Tax Allocation (Sotoyome Community Devel.)¹		5.125			08/01/2031		1,022,673
	1,165,000	Heber, CA Public Utilities District (Heber Meadows)		5.300			09/01/2035		1,071,101
	1,020,000	Hemet, CA Unified School District		5.100			09/01/2030		963,533
	785,000	Hemet, CA Unified School District		5.125			09/01/2036		787,386
	1,285,000	Hemet, CA Unified School District		5.125			09/01/2037		1,153,853
	1,505,000	Hemet, CA Unified School District		5.250			09/01/2035		1,520,441
	1,155,000	Hemet, CA Unified School District Community Facilities District No. 2005-3		5.375			09/01/2026		1,155,508
	2,835,000	Hemet, CA Unified School District Community Facilities District No. 2005-3		5.750			09/01/2039		2,800,328


31				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


Principal Amount				Coupon			Maturity		Value
	California Continued
	$ 60,000	Hemet, CA Unified School District Community Facilities District Special Tax			5.625	%		09/01/2035	$	60,040
	20,000	Hesperia, CA Improvement Bond Act 1915	��		8.500			09/02/2024		20,632
	1,355,000	Hesperia, CA Public Financing Authority, Tranche A			6.250			09/01/2035		1,355,379
	3,345,000	Hesperia, CA Public Financing Authority, Tranche B			6.250			09/01/2035		3,345,937
	3,325,000	Hesperia, CA Public Financing Authority, Tranche C			6.250			09/01/2035		3,325,931
	1,065,000	Hesperia, CA Unified School District			5.000			09/01/2030		1,065,426
	1,700,000	Hesperia, CA Unified School District			5.000			09/01/2037		1,627,325
	50,000	Hesperia, CA Unified School District			5.200			09/01/2035		49,666
	1,430,000	Imperial County, CA Community Facilities District No. 2004-2 Special Tax			5.900			09/01/2037		1,098,211
	1,070,000	Imperial County, CA Special Tax			5.000			09/01/2037		804,426
	7,000,000	Imperial, CA Irrigation District¹			6.250			11/01/2031		8,697,640
	2,215,000	Indio, CA Community Facilities District Special Tax			5.250			09/01/2027		2,215,332
	1,000,000	Indio, CA Community Facilities District Special Tax			5.250			09/01/2036		986,500
	2,500,000	Indio, CA Community Facilities District Special Tax			5.250			09/01/2036		2,433,275
	285,000	Indio, CA Community Facilities District Special Tax (Sonora Wells)			5.000			09/01/2020		291,746
	300,000	Indio, CA Community Facilities District Special Tax (Sonora Wells)			5.000			09/01/2021		304,743
	625,000	Indio, CA Community Facilities District Special Tax (Sonora Wells)			5.050			09/01/2026		624,350
	2,805,000	Indio, CA Community Facilities District Special Tax (Sonora Wells)			5.125			09/01/2036		2,629,856
	35,000	Indio, CA Hsg. (Olive Court Apartments)¹			6.375			12/01/2026		35,190
	25,000	Indio, CA Improvement Bond Act 1915 Assessment District No. 2002-2			6.125			09/02/2027		25,510
	1,990,000	Indio, CA Improvement Bond Act 1915 Assessment District No. 2003-03			6.125			09/02/2029		2,068,028
	25,000	Indio, CA Improvement Bond Act 1915 Assessment District No. 2003-5 (Sunburst)			5.875			09/02/2029		25,901
	354,105,000	Inland, CA Empire Tobacco Securitization Authority (TASC)			8.000	³		06/01/2057		3,070,090
	3,130,000	Ione, CA Special Tax Community Facilities District 2005-2-A			6.000			09/01/2036		3,249,097
	10,000	Irvine, CA Improvement Bond Act 1915			5.625			09/02/2024		10,244
	30,000	Jurupa, CA Community Services District Special Tax			5.000			09/01/2036		30,076
	650,000	Jurupa, CA Community Services District Special Tax (Eastvale Area)			6.375			09/01/2033		670,105
	2,650,000	Jurupa, CA Community Services District Special Tax Community Facilities District No. 15 (Eastvale)			6.500			09/01/2042		2,732,097


32				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 1,000,000	Jurupa, CA Community Services District Special Tax Community Facilities District No. 25		6.000	%		09/01/2042	$	1,030,580
	500,000	Jurupa, CA Community Services District Special Tax Community Facilities District No. 38		6.375			09/01/2040		515,460
	110,000	Jurupa, CA Public Financing Authority		6.000			09/01/2032		113,389
	1,000,000	Jurupa, CA Public Financing Authority		6.125			09/01/2040		1,030,720
	1,140,000	Jurupa, CA Public Financing Authority		6.125			09/01/2040		1,175,021
	20,000	Kingsburg, CA Public Financing Authority		8.000			09/15/2021		20,052
	2,500,000	La Verne, CA COP (Bethren Hillcrest Homes)¹		5.600			02/15/2033		2,516,950
	2,000,000	La Verne, CA COP (Bethren Hillcrest Homes)¹		6.625			02/15/2025		2,037,980
	565,000	Lake Berryessa, CA Resort Improvement District		5.250			09/02/2017		518,953
	1,440,000	Lake Berryessa, CA Resort Improvement District		5.500			09/02/2027		1,190,290
	2,400,000	Lake Berryessa, CA Resort Improvement District		5.550			09/02/2037		1,830,384
	2,020,000	Lake Elsinore, CA Community Facilities District No. 2006-2 Special Tax (Viscaya)		5.400			09/01/2036		2,033,009
	120,000	Lake Elsinore, CA Public Financing Authority (Canyon Hills)		5.875			09/01/2027		123,664
	245,000	Lake Elsinore, CA Public Financing Authority (Canyon Hills)		5.875			09/01/2028		252,465
	155,000	Lake Elsinore, CA Public Financing Authority (Canyon Hills)		6.000			09/01/2029		159,731
	200,000	Lake Elsinore, CA Public Financing Authority (Canyon Hills)		6.000			09/01/2030		206,094
	2,050,000	Lake Elsinore, CA Public Financing Authority (Canyon Hills)		6.250			09/01/2040		2,112,259
	1,205,000	Lake Elsinore, CA Public Financing Authority (Villages Wasson Canyon)		5.250			09/01/2038		1,214,327
	2,575,000	Lake Elsinore, CA Special Tax		5.150			09/01/2036		2,575,901
	920,000	Lake Elsinore, CA Special Tax		5.200			09/01/2026		934,453
	2,800,000	Lake Elsinore, CA Special Tax		5.250			09/01/2037		2,827,888
	1,210,000	Lake Elsinore, CA Special Tax		5.350			09/01/2036		1,216,510
	1,150,000	Lake Elsinore, CA Special Tax		5.350			09/01/2036		1,174,576
	2,000,000	Lake Elsinore, CA Special Tax		5.450			09/01/2036		1,990,860
	1,170,000	Lake Elsinore, CA Unified School District		5.000			09/01/2037		1,081,876
	2,000,000	Lake Elsinore, CA Unified School District		5.350			09/01/2035		2,002,160
	1,220,000	Lake Elsinore, CA Unified School District		5.350			09/01/2035		1,197,430
	1,435,000	Lake Elsinore, CA Unified School District		5.400			09/01/2035		1,450,412
	1,275,000	Lake Elsinore, CA Unified School District Community Facilities District Special Tax No. 2005-7		6.250			09/01/2040		1,370,957


33				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 350,000	Lake Elsinore, CA Unified School District Community Facilities District Special Tax No. 2006-4		5.625	%		09/01/2040	$	351,222
	1,100,000	Lake Elsinore, CA Unified School District Community Facilities District Special Tax No. 2006-6		5.900			09/01/2037		1,122,517
	420,000	Lammersville, CA School District Community Facilities District (Mountain House)		0.000	⁴		09/01/2025		368,525
	375,000	Lammersville, CA School District Community Facilities District (Mountain House)		0.000	⁴		09/01/2026		328,035
	885,000	Lammersville, CA School District Community Facilities District (Mountain House)		0.000	⁴		09/01/2027		775,039
	1,000,000	Lammersville, CA School District Community Facilities District (Mountain House)		0.000	⁴		09/01/2028		872,100
	500,000	Lammersville, CA School District Community Facilities District (Mountain House)		0.000	⁴		09/01/2029		438,465
	500,000	Lammersville, CA School District Community Facilities District (Mountain House)		0.000	⁴		09/01/2030		435,105
	1,000,000	Lammersville, CA School District Community Facilities District (Mountain House)		0.000	⁴		09/01/2032		867,840
	1,340,000	Lancaster, CA Redevel. Agency Tax Allocation (Comb Redevel.)¹		5.000			08/01/2024		1,342,064
	1,670,000	Lancaster, CA Redevel. Agency Tax Allocation (Comb Redevel.)¹		6.875			08/01/2034		1,912,384
	1,010,000	Lancaster, CA Redevel. Agency Tax Allocation (Comb Redevel.)¹		6.875			08/01/2039		1,150,986
	20,000	Lathrop, CA Financing Authority (Water Supply)		5.600			06/01/2018		20,384
	10,000	Lathrop, CA Financing Authority (Water Supply)		5.700			06/01/2019		10,179
	1,675,000	Lathrop, CA Improvement Bond Act 1915 (Mossdale Village)		5.100			09/02/2035		1,652,555
	50,000	Lathrop, CA Improvement Bond Act 1915 (Mossdale Village)		6.000			09/02/2022		51,065
	20,000	Lathrop, CA Improvement Bond Act 1915 (Mossdale Village)		6.125			09/02/2028		20,420
	60,000	Lathrop, CA Improvement Bond Act 1915 (Mossdale Village)		6.125			09/02/2033		60,986
	4,355,000	Lathrop, CA Special Tax Community Facilities District No. 03-2		7.000			09/01/2033		4,491,616
	625,000	Lee Lake, CA Water District Community Facilities District No. 2 Special Tax (Montecito Ranch)		6.125			09/01/2032		628,200
	4,000,000	LeMoore, CA Redevel. Agency Tax Allocation¹		7.375			08/01/2040		4,422,880
	635,000	Lincoln, CA Special Tax		5.000			09/01/2026		621,779
	1,315,000	Lincoln, CA Special Tax		5.000			09/01/2036		1,187,208
	150,000	Long Beach, CA Bond Finance Authority (Redevel. Hsg. & Gas Utilities)¹		5.000			08/01/2025		152,588


34				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 50,000	Long Beach, CA Bond Finance Authority Natural Gas		5.500	%		11/15/2028	$	55,562
	1,000,000	Long Beach, CA Bond Finance Authority Natural Gas		5.500			11/15/2037		1,097,100
	1,200,000	Los Alamitos, CA Unified School District COP		0.000	⁴		08/01/2034		672,024
	15,000,000	Los Angeles, CA Community College District²		5.000			08/01/2033		16,965,750
	10,000,000	Los Angeles, CA Community College District²		6.000			08/01/2033		12,195,400
	2,075,000	Los Angeles, CA Community Devel. Agency (Adelante Eastside Redevel.)¹		6.500			09/01/2039		2,308,956
	1,575,000	Los Angeles, CA Community Redevel. Agency (Grand Central Square)¹		5.000			12/01/2026		1,555,864
	14,210,000	Los Angeles, CA Dept. of Airports (Los Angeles International Airport)²		5.250			05/15/2024		16,030,655
	10,215,000	Los Angeles, CA Dept. of Airports (Los Angeles International Airport)²		5.375			05/15/2025		11,555,208
	10,000,000	Los Angeles, CA Dept. of Airports (Los Angeles International Airport)²		5.375			05/15/2026		11,284,242
	11,000,000	Los Angeles, CA Dept. of Airports (Los Angeles International Airport)²		5.375			05/15/2027		12,392,627
	10,095,000	Los Angeles, CA Dept. of Airports (Los Angeles International Airport)²		5.375			05/15/2028		11,334,262
	3,000,000	Los Angeles, CA Dept. of Water & Power²		5.375			07/01/2034		3,470,790
	12,000,000	Los Angeles, CA Dept. of Water & Power²		5.375			07/01/2038		13,723,440
	16,300,000	Los Angeles, CA Harbor Dept.²		5.250			08/01/2034		18,738,806
	1,500,000	Los Angeles, CA Hsg. Auth. (Property Acquisition)¹		6.000			06/01/2029		1,669,575
	2,000,000	Los Angeles, CA Hsg. Auth. (Property Acquisition)¹		6.250			06/01/2034		2,202,540
	500,000	Los Angeles, CA Hsg. Auth. (Property Acquisition)¹		6.375			06/01/2039		539,940
	1,500,000	Los Angeles, CA IDA (Santee Court Parking Facility)		5.000			12/01/2020		1,030,350
	1,100,000	Los Angeles, CA IDA (Santee Court Parking Facility)		5.000			12/01/2027		705,331
	200,000	Los Angeles, CA Multifamily Hsg. (Park Plaza West)¹		5.500			01/20/2043		202,228
	4,000,000	Los Angeles, CA Municipal Improvement Corp. (Real Property)¹		6.000			09/01/2039		4,659,240
	2,500,000	Los Angeles, CA Unified School District¹		5.000			07/01/2029		2,874,975
	1,485,000	Los Angeles, CA Unified School District COP (Headquarters Building)¹		5.000			10/01/2029		1,659,948
	1,075,000	Los Angeles, CA Unified School District COP (Headquarters Building)¹		5.000			10/01/2030		1,199,711
	1,090,000	Los Angeles, CA Unified School District COP (Headquarters Building)¹		5.000			10/01/2031		1,207,644
	20,000	Los Banos, CA COP		6.000			12/01/2019		20,029
	85,000	Madera County, CA COP (Valley Children’s Hospital)¹		5.750			03/15/2028		85,131
	925,000	Madera, CA Special Tax		5.000			09/01/2036		759,166
	475,000	Malibu, CA Community Facilities District Special Tax (Carbon Beach)		5.875			09/01/2039		489,668


35				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 10,000	Manteca, CA Unified School District Special Tax Community Facilities District No. 89		5.400	%		09/01/2023	$	10,000
	4,530,000	Mayers, CA Memorial Hospital District¹		7.875			06/01/2041		4,792,740
	1,375,000	Mendota, CA Joint Powers Financing Authority Wastewater		5.150			07/01/2035		1,238,284
	100,000	Menifee, CA Union School District Special Tax		5.000			09/01/2022		100,901
	915,000	Menifee, CA Union School District Special Tax		5.200			09/01/2030		916,922
	400,000	Menifee, CA Union School District Special Tax		5.200			09/01/2035		400,452
	500,000	Menifee, CA Union School District Special Tax		5.250			09/01/2035		493,395
	250,000	Menifee, CA Union School District Special Tax		5.250			09/01/2036		252,253
	2,930,000	Merced, CA Special Tax		5.000			09/01/2036		2,115,167
	4,705,000	Metropolitan Water District of Southern California¹		5.000			07/01/2032		5,369,864
	3,635,000	Modesto, CA Special Tax Community Facilities District No. 4		5.150			09/01/2036		3,637,472
	3,000,000	Montebello, CA Community Redevel. Agency (Montebello Hills Redevel.)¹		8.100			03/01/2027		3,562,290
	25,000	Moreno Valley, CA Unified School District Community Facilities District		5.100			09/01/2028		25,571
	1,475,000	Moreno Valley, CA Unified School District Community Facilities District		5.150			09/01/2035		1,486,210
	680,000	Moreno Valley, CA Unified School District Community Facilities District		5.200			09/01/2036		685,936
	750,000	Moreno Valley, CA Unified School District Community Facilities District Special Tax No. 2004-3		5.000			09/01/2037		688,770
	1,665,000	Moreno Valley, CA Unified School District Community Facilities District Special Tax No. 2004-6		5.000			09/01/2022		1,716,249
	10,000	Murrieta, CA Community Facilities District Special Tax (Bluestone)		6.300			09/01/2031		10,108
	235,000	Murrieta, CA Community Facilities District Special Tax (Meadowlane/Amberwalk)		5.125			09/01/2035		234,516
	25,000	Murrieta, CA Community Facilities District Special Tax (Murrieta Springs)		5.375			09/01/2029		25,006
	35,000	Murrieta, CA Valley Unified School District Special Tax		5.250			09/01/2037		34,709
	370,000	Murrieta, CA Valley Unified School District Special Tax		5.375			09/01/2026		377,100
	1,355,000	Murrieta, CA Valley Unified School District Special Tax		5.450			09/01/2038		1,357,182
	2,000,000	Newport Beach, CA (Hoag Memorial Hospital Presbyterian)¹		6.000			12/01/2040		2,465,920
	2,000,000	Norco, CA Redevel. Agency Tax Allocation¹		6.000			03/01/2036		2,196,920


36				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Principal Amount			Coupon			Maturity		Value
	California Continued
	$157,335,000	Northern CA Tobacco Securitization Authority (TASC)		6.700	%³		06/01/2045	$	4,252,765
	1,250,000	Northern Humboldt, CA Union High School District¹		6.500			08/01/2034		1,549,925
	45,000	Northern, CA Inyo County Local Hospital District		5.300			12/01/2028		42,208
	2,000,000	Northern, CA Inyo County Local Hospital District¹		6.375			12/01/2025		2,175,440
	1,000,000	Oak Valley, CA Hospital District¹		7.000			11/01/2035		1,077,000
	10,000	Oakdale, CA Public Financing Authority Tax Allocation (Central City Redevel.)		6.100			06/01/2027		10,022
	1,000,000	Oakland, CA GO¹		6.000			01/15/2034		1,155,500
	250,000	Oakland, CA GO¹		6.250			01/15/2039		290,983
	2,500,000	Oakland, CA Unified School District¹		5.250			08/01/2024		2,506,925
	2,000,000	Oakland, CA Unified School District		5.500			08/01/2032		2,226,960
	4,595,000	Oakland, CA Unified School District		6.125			08/01/2029		5,253,831
	250,000	Oakland, CA Unified School District		6.500			08/01/2022		299,933
	250,000	Oakland, CA Unified School District		6.500			08/01/2023		300,955
	250,000	Oakland, CA Unified School District		6.500			08/01/2024		298,743
	875,000	Oakley, CA Public Finance Authority		5.200			09/02/2026		898,940
	2,940,000	Oakley, CA Public Finance Authority		5.250			09/02/2036		2,955,494
	3,205,000	Olivehurst, CA Public Utilities District (Plumas Lake Community Facilities District)		7.625			09/01/2038		3,273,523
	4,000,000	Ontario, CA Improvement Bond Act 1915 Assessment District No. 108		7.500			09/02/2020		4,023,520
	210,000	Orange County, CA Community Facilities District (Ladera Ranch)		5.550			08/15/2033		211,195
	2,000,000	Orange, CA Community Facilities District Special Tax (Del Rio Public Improvements)		6.000			10/01/2040		2,063,240
	440,000	Palm Desert, CA Financing Authority		5.050	³		08/01/2015		382,342
	390,000	Palm Desert, CA Financing Authority		5.100	³		08/01/2016		322,764
	500,000	Palm Desert, CA Financing Authority¹		5.200			10/01/2028		500,225
	230,000	Palm Desert, CA Financing Authority		5.650	³		04/01/2018		170,292
	1,020,000	Palm Desert, CA Financing Authority		5.650	³		08/01/2018		741,764
	265,000	Palm Desert, CA Financing Authority		5.750	³		04/01/2019		183,192
	1,165,000	Palm Desert, CA Financing Authority		5.750	³		08/01/2019		790,289
	305,000	Palm Desert, CA Financing Authority		5.850	³		04/01/2020		197,921
	1,310,000	Palm Desert, CA Financing Authority		5.850	³		08/01/2020		833,763
	340,000	Palm Desert, CA Financing Authority		5.950	³		04/01/2021		206,179
	1,450,000	Palm Desert, CA Financing Authority		5.950	³		08/01/2021		862,562
	380,000	Palm Desert, CA Financing Authority		6.000	³		04/01/2022		216,136
	1,605,000	Palm Desert, CA Financing Authority		6.000	³		08/01/2022		894,836


37				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 395,000	Palm Desert, CA Financing Authority		6.010	%³		04/01/2023	$	210,966
	1,755,000	Palm Desert, CA Financing Authority		6.010	³		08/01/2023		919,129
	410,000	Palm Desert, CA Financing Authority		6.020	³		04/01/2024		205,935
	1,910,000	Palm Desert, CA Financing Authority		6.020	³		08/01/2024		940,599
	430,000	Palm Desert, CA Financing Authority		6.030	³		04/01/2025		201,988
	2,070,000	Palm Desert, CA Financing Authority		6.030	³		08/01/2025		952,366
	445,000	Palm Desert, CA Financing Authority		6.040	³		04/01/2026		194,202
	2,235,000	Palm Desert, CA Financing Authority		6.040	³		08/01/2026		955,865
	465,000	Palm Desert, CA Financing Authority		6.050	³		04/01/2027		188,288
	1,400,000	Palm Desert, CA Financing Authority		6.050	³		08/01/2027		555,366
	480,000	Palm Desert, CA Financing Authority		6.060	³		04/01/2028		181,637
	1,415,000	Palm Desert, CA Financing Authority		6.060	³		08/01/2028		524,498
	500,000	Palm Desert, CA Financing Authority		6.070	³		04/01/2029		173,570
	1,370,000	Palm Desert, CA Financing Authority		6.070	³		08/01/2029		465,622
	520,000	Palm Desert, CA Financing Authority		6.080	³		04/01/2030		160,935
	1,430,000	Palm Desert, CA Financing Authority		6.080	³		08/01/2030		432,890
	540,000	Palm Desert, CA Financing Authority		6.090	³		04/01/2031		154,148
	1,495,000	Palm Desert, CA Financing Authority		6.090	³		08/01/2031		417,314
	560,000	Palm Desert, CA Financing Authority		6.100	³		04/01/2032		146,938
	1,560,000	Palm Desert, CA Financing Authority		6.100	³		08/01/2032		400,156
	580,000	Palm Desert, CA Financing Authority		6.100	³		04/01/2033		142,460
	1,625,000	Palm Desert, CA Financing Authority		6.100	³		08/01/2033		390,211
	590,000	Palm Desert, CA Financing Authority		6.100	³		04/01/2034		134,272
	1,705,000	Palm Desert, CA Financing Authority		6.100	³		08/01/2034		379,277
	2,075,000	Palm Desert, CA Financing Authority		6.100	³		08/01/2035		429,193
	5,000,000	Palm Desert, CA Improvement Bond Act 1915		5.100			09/02/2037		4,096,750
	3,000,000	Palm Desert, CA Special Tax Community Facilities District No. 2005-1		5.150			09/01/2027		2,648,400
	2,335,000	Palm Desert, CA Special Tax Community Facilities District No. 2005-1-A		5.250			09/01/2026		2,104,115
	2,000,000	Palm Desert, CA Special Tax Community Facilities District No. 2005-1-A		5.450			09/01/2032		1,733,200
	120,000	Palm Springs, CA Airport Passenger Facilities (Palm Springs International Airport)		5.450			07/01/2020		120,581
	490,000	Palm Springs, CA Airport Passenger Facilities (Palm Springs International Airport)		5.550			07/01/2028		476,858
	250,000	Palm Springs, CA Airport Passenger Facilities (Palm Springs International Airport)		6.400			07/01/2023		254,473
	505,000	Palm Springs, CA Airport Passenger Facilities (Palm Springs International Airport)		6.500			07/01/2027		512,262


38				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 85,000	Palm Springs, CA Airport Passenger Facilities (Palm Springs Regional Airport)¹		5.250	%		01/01/2022	$	85,164
	10,000	Palm Springs, CA Improvement Bond Act 1915		5.550			09/02/2023		10,114
	1,355,000	Palmdale, CA Community Facilities District Special Tax		5.400			09/01/2035		1,368,360
	6,360,000	Palmdale, CA Community Facilities District Special Tax		6.125			09/01/2037		6,435,875
	5,340,000	Palmdale, CA Community Facilities District Special Tax		6.250			09/01/2035		5,463,087
	500,000	Palmdale, CA Elementary School District Special Tax Community Facilities District No. 90-1¹		5.700			08/01/2018		501,670
	3,850,000	Paramount, CA Redevel. Agency Tax Allocation¹		5.000			08/01/2023		3,919,801
	1,365,000	Perris, CA Community Facilities District Special Tax		5.300			09/01/2035		1,381,530
	2,025,000	Perris, CA Community Facilities District Special Tax (Amber Oaks)		6.000			09/01/2034		2,104,704
	2,500,000	Perris, CA Community Facilities District Special Tax (Chaparral Ridge)		6.250			09/01/2033		2,583,575
	2,110,000	Perris, CA Community Facilities District Special Tax (Harmony Grove)		5.300			09/01/2035		2,121,204
	10,000	Perris, CA Community Facilities District Special Tax (May Farms)		5.100			09/01/2030		10,147
	120,000	Perris, CA Community Facilities District Special Tax (May Farms)		5.150			09/01/2035		120,634
	1,255,000	Perris, CA Community Facilities District Special Tax No. 2001		5.000			09/01/2037		1,219,998
	1,270,000	Perris, CA Community Facilities District Special Tax, Series A		5.750			09/01/2035		1,307,554
	2,500,000	Perris, CA Community Facilities District Special Tax, Series B		6.000			09/01/2034		2,598,400
	135,000	Perris, CA Public Financing Authority		5.000			09/01/2017		137,194
	85,000	Perris, CA Public Financing Authority		5.100			09/01/2018		86,363
	2,000,000	Perris, CA Public Financing Authority		5.350			10/01/2036		2,000,160
	10,000	Perris, CA Public Financing Authority, Series A		6.000			09/01/2023		10,375
	80,000	Perris, CA Public Financing Authority, Series A		6.125			09/01/2034		83,345
	1,815,000	Perris, CA Public Financing Authority, Series A		6.250			09/01/2033		1,875,675
	2,080,000	Perris, CA Public Financing Authority, Series A		6.600			09/01/2038		2,158,707
	2,035,000	Perris, CA Public Financing Authority, Series C		6.200			09/01/2038		2,061,374
	845,000	Perris, CA Public Financing Authority, Series D		5.500			09/01/2024		856,391
	7,510,000	Perris, CA Public Financing Authority, Series D		5.800			09/01/2038		7,563,621
	2,500,000	Perris, CA Union High School District		6.125			09/01/2041		2,576,575
	2,000,000	Perris, CA Union High School District Financing Authority		6.000			09/01/2033		2,061,440


39				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 25,000	Pleasant Hill, CA Special Tax Downtown Community Facilities District No. 1		6.000	%		09/01/2032	$	25,011
	1,305,000	Pomona, CA Public Financing Authority (Merfed Redevel.)¹		5.250			02/01/2020		1,327,237
	500,000	Pomona, CA Public Financing Authority (Water Facilities)¹		5.000			05/01/2047		522,110
	50,000	Pomona, CA Unified School District¹		6.150			08/01/2030		60,405
	2,165,000	Porterville, CA COP¹		5.000			07/01/2036		2,229,690
	100,000	Poway, CA Unified School District		7.500			09/15/2032		103,293
	3,990,000	Poway, CA Unified School District Special Tax Community Facilities District No. 14		5.250			09/01/2036		4,007,237
	500,000	Poway, CA Unified School District Special Tax Community Facilities District No. 14 (Torrey Highland Subarea)		6.125			09/01/2041		515,315
	3,000,000	Ramona, CA Unified School District COP¹		5.000			05/01/2032		3,088,500
	25,000	Rancho Cordova, CA Community Facilities District Special Tax (Sunridge Anatolia)		6.000			09/01/2033		25,264
	20,000	Rancho Cordova, CA Community Facilities District Special Tax (Sunridge Anatolia)		6.100			09/01/2037		20,211
	600,000	Rancho Cucamonga, CA Community Facilities District Special Tax (Amador)		5.000			09/01/2027		580,836
	1,260,000	Rancho Cucamonga, CA Community Facilities District Special Tax (Amador)		5.000			09/01/2037		1,126,037
	5,470,000	Rancho Cucamonga, CA Community Facilities District Special Tax (Etiwanda)		5.375			09/01/2036		5,508,564
	570,000	Rancho Cucamonga, CA Community Facilities District Special Tax (Vintners)		5.000			09/01/2027		581,628
	1,120,000	Rancho Cucamonga, CA Community Facilities District Special Tax (Vintners)		5.000			09/01/2037		1,126,518
	2,470,000	Rancho Cucamonga, CA Community Facilities District Special Tax (Vintners)		5.375			09/01/2036		2,487,414
	5,000,000	Rancho, CA Water District Financing Authority¹		5.000			08/01/2028		5,646,400
	10,000	Redding, CA Improvement Bond Act 1915 (Tierra Oaks Assessment District 1993-1)		7.000			09/02/2012		9,998
	2,595,000	Rialto, CA Redevel. Agency (Merged Project Area)¹		5.875			09/01/2033		2,770,837
	490,000	Rialto, CA Special Tax Community Facilities District No. 2006-1		5.250			09/01/2026		493,376
	1,470,000	Rialto, CA Special Tax Community Facilities District No. 2006-1		5.350			09/01/2036		1,423,166
	15,000	Richgrove, CA School District		6.375			07/01/2018		15,135
	2,000,000	Richmond, CA Joint Powers Financing Authority (Civic Center)¹		5.750			08/01/2029		2,310,120
	2,660,000	Richmond, CA Joint Powers Financing Authority (Westridge Hilltop Apartments)¹		5.000			12/15/2026		2,575,066


40				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 1,165,000	Richmond, CA Joint Powers Financing Authority (Westridge Hilltop Apartments)¹		5.000	%		12/15/2033	$	1,088,063
	2,500,000	Ridgecrest, CA Redevel. Agency (Ridgecrest Redevel.)¹		6.250			06/30/2037		2,771,875
	10,530,000	Rio Hondo, CA Community College District		0.000	⁴		08/01/2042		7,093,113
	3,000,000	Rio Vista, CA Community Facilities District Special Tax No. 2004-1		5.850			09/01/2035		3,025,530
	14,860,000	River Islands, CA Public Financing Authority		5.200			09/01/2037		11,291,965
	100,000	River Islands, CA Public Financing Authority		6.000			09/01/2027		78,058
	25,000	River Islands, CA Public Financing Authority		6.000			09/01/2035		18,743
	700,000	Riverbank, CA Redevel. Agency (Riverbank Reinvestment)		5.000			08/01/2032		252,861
	6,585,000	Riverside County, CA Community Facilities District (Scott Road)		7.250			09/01/2038		6,786,764
	25,000	Riverside County, CA Community Facilities District Special Tax		5.600			09/01/2019		25,519
	3,000,000	Riverside County, CA Redevel. Agency (Desert Communities)¹		6.000			10/01/2037		3,103,320
	1,000,000	Riverside County, CA Redevel. Agency (Jurupa Valley Redevel.)¹		0.000	⁴		10/01/2027		701,380
	1,000,000	Riverside County, CA Redevel. Agency (Jurupa Valley Redevel.)¹		0.000	⁴		10/01/2031		713,060
	1,225,000	Riverside County, CA Redevel. Agency (Jurupa Valley Redevel.)¹		6.500			10/01/2025		1,371,118
	1,200,000	Riverside County, CA Redevel. Agency (Jurupa Valley Redevel.)¹		6.750			10/01/2030		1,350,924
	1,000,000	Riverside, CA Improvement Bond Act 1915 (Hunter Park Assessment District)		5.200			09/02/2036		1,006,170
	65,000	Riverside, CA Improvement Bond Act 1915 (Sycamore Canyon Assessment District)		8.500			09/02/2012		65,397
	1,000,000	Riverside, CA Special Tax Community Facilities District No. 92-1, Series A		5.300			09/01/2034		1,001,190
	25,000	Riverside, CA Unified School District		5.500			09/01/2032		25,011
	1,385,000	Riverside, CA Unified School District Special Tax Community Facilities District No. 12		8.500			09/01/2038		1,463,959
	355,000	Riverside, CA Unified School District Special Tax Community Facilities District No. 15		6.500			09/01/2029		384,316
	1,070,000	Riverside, CA Unified School District Special Tax Community Facilities District No. 15		6.750			09/01/2039		1,150,218
	25,000	Romoland, CA School District Special Tax		5.250			09/01/2035		25,180
	1,985,000	Romoland, CA School District Special Tax		5.375			09/01/2038		1,961,577
	1,250,000	Romoland, CA School District Special Tax Community Facilities District 2006-1		6.000			09/01/2041		1,288,275


41				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 2,250,000	Romoland, CA School District Special Tax Community Facilities District 91-18		6.000	%		09/01/2037	$	2,318,850
	1,210,000	Romoland, CA School District Special Tax Community Facilities District No. 2004-1		6.125			09/01/2034		1,247,062
	1,000,000	Romoland, CA School District Special Tax Community Facilities District No. 2004-1		6.250			09/01/2041		1,030,630
	1,115,000	Roseville, CA Special Tax (Diamond Creek)		5.000			09/01/2026		665,867
	4,850,000	Roseville, CA Special Tax (Diamond Creek)		5.000			09/01/2037		2,408,462
	3,445,000	Roseville, CA Special Tax (Stone Point)		5.250			09/01/2036		1,982,666
	1,000,000	Ross Valley, CA School District¹		5.500			08/01/2041		1,159,550
	3,370,000	Sacramento, CA City Financing Authority (North Natomas CFD No. 2)		6.250			09/01/2023		3,386,783
	55,000	Sacramento, CA Health Facility (Center for Aids Research Education & Services)¹		5.300			01/01/2024		55,080
	15,000	Sacramento, CA Special Tax (North Natomas Community Facilities)		6.000			09/01/2033		15,316
	1,000,000	Sacramento, CA Unified School District¹		5.125			07/01/2029		1,045,130
	100,000	San Bernardino, CA Joint Powers Financing Authority (California Dept. of Transportation Lease)¹		5.500			12/01/2020		100,195
	1,375,000	San Bernardino, CA Joint Powers Financing Authority (Central City)		5.750			07/01/2020		1,419,894
	1,320,000	San Bernardino, CA Joint Powers Financing Authority (Police Station)¹		5.500			09/01/2020		1,319,076
	20,000	San Bernardino, CA Joint Powers Financing Authority (Police Station)¹		5.500			09/01/2024		19,964
	1,850,000	San Bernardino, CA Joint Powers Financing Authority (Tax Allocation)		6.625			04/01/2026		1,884,003
	1,410,000	San Bernardino, CA Mountains Community Hospital District COP		5.000			02/01/2027		1,338,837
	3,235,000	San Bernardino, CA Mountains Community Hospital District COP		5.000			02/01/2037		2,883,258
	3,000,000	San Buenaventura, CA Community Memorial Health Systems¹		8.000			12/01/2031		3,800,640
	875,000	San Diego County, CA COP¹		5.600			07/01/2038		894,373
	1,225,000	San Diego County, CA COP		5.700			02/01/2028		980,466
	6,645,000	San Diego County, CA Redevel. Agency (Gillespie Field)		5.750			12/01/2032		6,250,287
	12,335,000	San Diego, CA Community College District²		5.000			05/01/2030		13,903,969
	3,000,000	San Diego, CA Hsg. Authority (Sorrento Tower Apartments)¹		5.000			05/01/2029		3,299,220
	20,000	San Diego, CA Improvement Bond Act 1915		6.200			09/02/2033		20,005
	5,880,000	San Diego, CA Public Facilities Financing Authority¹		5.250			08/01/2027		7,081,343


42				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 10,000,000	San Diego, CA Regional Building Authority (County Operations Center & Annex)²		5.375	%		02/01/2036	$	11,289,200
	175,000	San Francisco, CA Bay Area Rapid Transit District¹		5.000			07/01/2031		175,600
	1,000,000	San Francisco, CA City & County Airports Commission¹		5.000			05/01/2031		1,122,510
	1,000,000	San Francisco, CA City & County Airports Commission¹		5.000			05/01/2032		1,116,650
	15,000	San Francisco, CA City & County Airports Commission (SFO Fuel Company)¹		5.250			01/01/2024		15,019
	2,000,000	San Francisco, CA City & County Redevel. Financing Authority (Mission Bay North Redevel.)¹		6.500			08/01/2039		2,325,840
	400,000	San Francisco, CA City & County Redevel. Financing Authority (Mission Bay North Redevel.)¹		6.750			08/01/2033		474,640
	500,000	San Francisco, CA City & County Redevel. Financing Authority (Mission Bay North Redevel.)¹		7.000			08/01/2033		578,305
	1,500,000	San Francisco, CA City & County Redevel. Financing Authority (Mission Bay South Redevel.)¹		6.625			08/01/2039		1,654,020
	500,000	San Francisco, CA City & County Redevel. Financing Authority (San Francisco Redevel.)¹		6.500			08/01/2032		578,140
	545,000	San Francisco, CA City & County Redevel. Financing Authority (San Francisco Redevel.)¹		6.625			08/01/2039		637,944
	1,090,000	San Gorgonio, CA Memorial Health Care District¹		6.750			08/01/2022		1,299,171
	1,040,000	San Gorgonio, CA Memorial Health Care District¹		6.750			08/01/2023		1,230,965
	6,500,000	San Gorgonio, CA Memorial Healthcare¹		7.100			08/01/2033		7,694,050
	6,490,000	San Jacinto, CA Financing Authority, Tranche A		6.600			09/01/2033		5,635,916
	6,345,000	San Jacinto, CA Financing Authority, Tranche B		6.600			09/01/2033		5,509,998
	6,510,000	San Jacinto, CA Financing Authority, Tranche C		6.600			09/01/2033		5,641,371
	250,000	San Jacinto, CA Unified School District Special Tax		5.750			09/01/2040		257,605
	500,000	San Jacinto, CA Unified School District Special Tax		5.100			09/01/2036		349,355
	2,000,000	San Jose, CA Airport¹		6.250			03/01/2034		2,376,100
	745,000	San Jose, CA Finance Authority (Civic Center)¹		5.000			06/01/2032		747,399
	35,000	San Jose, CA Improvement Bond Act 1915		5.875			09/02/2023		36,076
	3,150,000	San Jose, CA Multifamily Hsg. (El Parador Apartments)¹		6.200			01/01/2041		3,156,426
	70,000	San Jose, CA Redevel. Agency¹		5.000			08/01/2015		73,149
	305,000	San Jose, CA Redevel. Agency¹		5.000			08/01/2018		313,717
	125,000	San Jose, CA Redevel. Agency¹		5.000			08/01/2020		127,228
	60,000	San Jose, CA Redevel. Agency¹		5.000			08/01/2025		60,632
	145,000	San Jose, CA Redevel. Agency¹		5.000			08/01/2026		146,083
	860,000	San Jose, CA Redevel. Agency¹		5.000			08/01/2026		870,999
	130,000	San Jose, CA Redevel. Agency¹		5.000			08/01/2027		130,898
	55,000	San Jose, CA Redevel. Agency¹		5.000			08/01/2028		55,322


43				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 2,000,000	San Jose, CA Redevel. Agency¹		5.850	%		08/01/2027	$	2,022,140
	535,000	San Jose, CA Redevel. Agency (Merged Area Redevel.)¹		5.000			08/01/2016		550,809
	170,000	San Jose, CA Redevel. Agency (Merged Area Redevel.)¹		5.000			08/01/2019		172,854
	1,235,000	San Jose, CA Redevel. Agency (Merged Area Redevel.)¹		5.000			08/01/2021		1,252,982
	795,000	San Jose, CA Redevel. Agency (Merged Area Redevel.)¹		5.000			08/01/2022		812,975
	100,000	San Jose, CA Redevel. Agency (Merged Area Redevel.)¹		5.000			08/01/2023		101,769
	220,000	San Jose, CA Redevel. Agency (Merged Area Redevel.)¹		5.000			08/01/2024		223,597
	2,165,000	San Jose, CA Redevel. Agency (Merged Area Redevel.)¹		5.000			08/01/2025		2,195,570
	300,000	San Jose, CA Redevel. Agency (Merged Area Redevel.)¹		5.000			08/01/2027		300,696
	200,000	San Jose, CA Redevel. Agency (Merged Area Redevel.)¹		5.000			08/01/2032		200,438
	25,000	San Jose, CA Special Tax Community Facilities District No. 9 (Bailey Highway 101)		6.600			09/01/2027		25,384
	10,000,000	San Marcos, CA Unified School District²		5.250			08/01/2031		11,741,600
	10,000,000	San Mateo, CA Union High School District²		5.000			09/01/2042		11,354,000
	550,000	Santa Ana, CA Unified School District Special Tax		5.100			09/01/2035		494,879
	1,000,000	Santa Clara County, CA Hsg. Authority (Rivertown Apartments)¹		5.850			08/01/2031		1,004,740
	2,060,000	Santa Clara County, CA Hsg. Authority (Rivertown Apartments)¹		6.000			08/01/2041		2,067,972
	3,000,000	Santa Clara, CA Redevel. Agency Tax Allocation (Bayshore North)¹		5.750			06/01/2026		3,353,640
	50,000	Santa Clarita, CA Community Facilities District Special Tax		5.850			11/15/2032		50,101
	8,395,000	Santa Cruz County, CA Redevel. Agency (Live Oak/Soquel Community)¹		7.000			09/01/2036		10,104,138
	1,750,000	Santa Monica, CA Redevel. Agency Tax Allocation (Earthquake Recovery Redevel.)¹		5.875			07/01/2036		2,069,620
	2,600,000	Santa Monica, CA Redevel. Agency Tax Allocation (Earthquake Recovery Redevel.)¹		5.875			07/01/2042		3,066,102
	805,000	Saugus, CA Union School District		6.750			09/01/2034		829,963
	2,715,000	Saugus, CA Union School District		7.000			09/01/2041		2,799,464
	4,850,000	Saugus, CA Union School District Community Facilities District No. 2006		11.625			09/01/2038		5,825,917
	1,655,000	Saugus, CA Union School District Community Facilities District No. 2006		11.625			09/01/2038		1,988,019
	415,000	Saugus, CA Union School District Special Tax		5.125			09/01/2031		425,998
	200,000	Saugus, CA Union School District Special Tax		5.125			09/01/2032		204,336
	2,000,000	Saugus, CA Union School District Special Tax		5.375			09/01/2042		2,041,260
	10,000	Seaside, CA Redevel. Agency Tax Allocation¹		5.375			08/01/2033		10,104
	2,500,000	Sequoia, CA Unified High School District¹		5.875			07/01/2036		3,090,575
	5,000,000	Sequoia, CA Unified High School District¹		6.000			07/01/2043		6,207,800


44				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 1,090,000	Shafter, CA Community Devel. Agency Tax Allocation		5.400	%		11/01/2026	$	1,080,506
	3,335,000	Shafter, CA Community Devel. Agency Tax Allocation		5.450			11/01/2036		3,108,287
	1,720,000	Signal Hill, CA Redevel. Agency Tax Allocation		7.000			10/01/2026		1,895,801
	620,000	Soledad, CA Redevel. Agency (Soledad Redevel.)¹		5.350			12/01/2028		620,019
	5,000	Sonoma County, CA Community Redevel. Agency (Roseland)¹		7.900			08/01/2013		5,138
	2,000,000	South Bayside, CA Waste Management Authority (Shoreway Environmental)¹		6.000			09/01/2036		2,224,340
	4,500,000	Southern CA Metropolitan Water District¹		5.000			07/01/2035		5,141,295
	2,085,000	Southern CA Public Power Authority¹		5.000			11/01/2033		2,154,410
	470,000	Southern CA Public Power Authority		5.250			11/01/2022		526,522
	50,000	Southern CA Public Power Authority		5.250			11/01/2023		55,075
	250,000	Southern CA Public Power Authority		5.250			11/01/2026		273,818
	205,000	Southern CA Public Power Authority Natural Gas		5.000			11/01/2028		214,366
	165,000	Southern CA Public Power Authority Natural Gas		5.000			11/01/2029		170,844
	2,255,000	Southern CA Public Power Authority Natural Gas		5.250			11/01/2027		2,440,789
	4,000,000	Southern CA Tobacco Securitization Authority¹		5.125			06/01/2046		3,156,080
	97,775,000	Southern CA Tobacco Securitization Authority		7.100	³		06/01/2046		2,368,111
	12,475,000	Southern CA Tobacco Securitization Authority (TASC)¹		5.000			06/01/2037		10,026,781
	2,000,000	Stockton, CA Community Facilities District (Arch Road East No. 99-02)		5.875			09/01/2037		2,035,200
	75,000	Stockton, CA Public Financing Authority (Parking)¹		5.125			09/01/2030		66,452
	1,000,000	Stockton, CA Public Financing Authority, Series A¹		5.250			09/01/2037		719,950
	2,380,000	Stockton, CA Redevel. Agency (Stockton Events Center Arena)¹		5.000			09/01/2036		1,892,314
	10,000	Suisun City, CA Public Financing Authority (Suisun City Redevel.)¹		5.200			10/01/2028		10,007
	15,000	Sulphur Springs, CA Unified School District Community Facilities District No. 2002-1-A		6.000			09/01/2033		15,368
	60,000	Susanville, CA Public Financing Authority		7.750			09/01/2017		60,279
	1,000,000	Susanville, CA Public Financing Authority (Utility Enterprises)¹		5.500			06/01/2030		1,053,860
	100,000	Temecula Valley, CA Unified School District Community Facilities District No. 2005-1		5.000			09/01/2036		100,619
	20,000	Temecula, CA Public Financing Authority Community Facilities District (Harveston)		5.100			09/01/2036		19,327
	990,000	Temecula, CA Public Financing Authority Community Facilities District (Roripaugh)		4.900			09/01/2013		941,490
	165,000	Temecula, CA Public Financing Authority Community Facilities District (Roripaugh)		5.000			09/01/2014		149,904


45				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 740,000	Temecula, CA Public Financing Authority Community Facilities District (Roripaugh)		5.050	%		09/01/2015	$	643,593
	805,000	Temecula, CA Public Financing Authority Community Facilities District (Roripaugh)		5.100			09/01/2016		671,386
	8,000,000	Temecula, CA Public Financing Authority Community Facilities District (Roripaugh)		5.450			09/01/2026		5,848,080
	13,790,000	Temecula, CA Public Financing Authority Community Facilities District (Roripaugh)		5.500			09/01/2036		9,392,645
	4,260,000	Trinity County, CA COP		8.500			01/15/2026		4,219,445
	50,000	Truckee-Donner, CA Public Utility District Special Tax		6.100			09/01/2033		50,476
	500,000	Tulare, CA Health Care District¹		6.500			08/01/2026		602,920
	630,000	Turlock, CA Health Facility (Emanuel Medical Center) COP¹		5.000			10/15/2017		688,754
	2,590,000	Turlock, CA Health Facility (Emanuel Medical Center) COP¹		5.000			10/15/2022		2,710,228
	305,000	Turlock, CA Health Facility (Emanuel Medical Center) COP¹		5.125			10/15/2027		311,991
	2,500,000	Turlock, CA Health Facility (Emanuel Medical Center) COP¹		5.125			10/15/2037		2,515,675
	425,000	Turlock, CA Public Financing Authority¹		5.450			09/01/2024		425,468
	1,500,000	Tustin, CA Unified School District¹		6.000			08/01/2036		1,885,650
	500,000	Twentynine Palms, CA Redevel. Agency Tax Allocation (Four Corners)¹		7.400			09/01/2032		586,320
	415,000	Twentynine Palms, CA Redevel. Agency Tax Allocation (Four Corners)¹		7.400			09/01/2032		486,646
	35,000	Union City, CA Special Tax Community Facilities District No. 1997-1		5.800			09/01/2028		35,006
	2,480,000	University of California¹		5.000			05/15/2027		2,598,346
	15,000,000	University of California¹		5.000			05/15/2033		15,631,800
	1,000,000	University of California (UCLA Health System)		5.250			05/15/2030		1,036,480
	200,000	Upland, CA Community Facilities District (San Antonio)		6.000			09/01/2034		202,196
	100,000	Upland, CA Community Facilities District Special Tax (Colonies at San Antonio)		5.900			09/01/2024		101,140
	60,000	Upland, CA Community Facilities District Special Tax (Colonies at San Antonio)		6.000			09/01/2024		62,874
	95,000	Vacaville, CA Public Financing Authority¹		5.400			09/01/2022		95,158
	50,000	Valley Center-Pauma, CA Unified School District (Woods Valley Ranch)		6.000			09/01/2033		50,111
	750,000	Ventura County, CA Area Hsg. Authority (Mira Vista Senior Apartments)		5.050			12/01/2026		721,958
	1,595,000	Ventura County, CA Area Hsg. Authority (Mira Vista Senior Apartments)		5.150			12/01/2031		1,514,373


46				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Principal Amount			Coupon			Maturity		Value
	California Continued
	$ 1,000,000	Vernon, CA Electric System¹		5.000	%		08/01/2030	$	1,077,480
	1,000,000	Vernon, CA Electric System¹		5.125			08/01/2033		1,075,750
	3,000,000	Vernon, CA Electric System¹		5.500			08/01/2041		3,272,280
	500,000	Victorville, CA Special Tax Community Facilities District 07-01		5.350			09/01/2042		515,140
	50,000	Watsonville, CA Redevel. Agency Tax Allocation (Watsonville 2000 Redevel.)¹		5.000			09/01/2024		51,071
	1,000,000	West Fresno, CA Elementary School District¹		6.600			05/01/2035		1,244,490
	1,500,000	West Hollywood, CA Community Devel. Commission Tax Allocation (East Side Redevel.)¹		7.500			09/01/2042		1,719,075
	50,000	West Kern, CA Water District¹		4.500			06/01/2025		52,157
	145,000	West Patterson, CA Financing Authority Special Tax		6.100			09/01/2032		145,273
	1,000,000	Westside, CA Union School District		5.250			09/01/2036		1,004,320
	2,300,000	Woodland, CA Finance Authority¹		6.000			03/01/2036		2,672,140
	1,500,000	Woodland, CA Finance Authority¹		6.000			03/01/2041		1,735,545
	10,000	Woodland, CA Special Tax Community Facilities District No. 1		6.000			09/01/2028		10,140
	3,550,000	Yuba City, CA Redevel. Agency		5.250			09/01/2039		3,435,268
									1,651,049,829
	U.S. Possessions—7.5%
	3,000,000	Guam Government Business Privilege¹		5.125			01/01/2042		3,335,970
	2,870,000	Northern Mariana Islands Ports Authority, Series A¹		5.500			03/15/2031		2,576,657
	1,585,000	Northern Mariana Islands Ports Authority, Series A¹		6.250			03/15/2028		1,199,100
	14,000,000	Puerto Rico Aqueduct & Sewer Authority¹		5.750			07/01/2037		15,067,640
	3,700,000	Puerto Rico Aqueduct & Sewer Authority¹		6.125			07/01/2024		4,367,998
	1,000,000	Puerto Rico Commonwealth GO¹		5.500			07/01/2021		1,141,330
	6,400,000	Puerto Rico Commonwealth GO¹		5.500			07/01/2039		6,757,696
	1,100,000	Puerto Rico Commonwealth GO¹		6.000			07/01/2039		1,205,644
	1,000,000	Puerto Rico Commonwealth GO¹		6.500			07/01/2037		1,144,850
	1,000,000	Puerto Rico Commonwealth GO¹		6.500			07/01/2040		1,168,330
	5,000,000	Puerto Rico Electric Power Authority, Series A¹		5.000			07/01/2029		5,374,050
	5,000,000	Puerto Rico Electric Power Authority, Series A¹		5.000			07/01/2042		5,155,600
	1,220,000	Puerto Rico Infrastructure (Mepsi Campus)		6.500			10/01/2037		1,282,488
	250,000	Puerto Rico ITEMECF (Ana G. Mendez University)¹		5.000			04/01/2027		255,368
	170,000	Puerto Rico ITEMECF (Ana G. Mendez University)¹		5.125			04/01/2032		172,905
	225,000	Puerto Rico ITEMECF (Ana G. Mendez University)¹		5.375			04/01/2042		229,142
	6,055,000	Puerto Rico ITEMECF (Cogeneration Facilities)¹		6.625			06/01/2026		6,079,341
	3,000,000	Puerto Rico Port Authority (American Airlines), Series A⁶		6.250			06/01/2026		1,956,210


47				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF INVESTMENTS Continued


Principal Amount			Coupon			Maturity		Value
	U.S. Possessions Continued
	$ 5,055,000	Puerto Rico Public Buildings Authority¹		6.750	%		07/01/2036	$	6,020,404
	15,000,000	Puerto Rico Public Finance Corp., Series B¹		5.500			08/01/2031		16,431,300
	5,000,000	Puerto Rico Sales Tax Financing Corp., Series A¹		5.500			08/01/2037		5,422,850
	3,995,000	Puerto Rico Sales Tax Financing Corp., Series A¹		5.500			08/01/2042		4,311,524
	10,000,000	Puerto Rico Sales Tax Financing Corp., Series A¹		5.750			08/01/2037		11,205,000
	17,000,000	Puerto Rico Sales Tax Financing Corp., Series A¹		6.500			08/01/2044		20,322,650
									122,184,047
	Total Investments, at Value (Cost $1,796,111,133)—109.0%								1,773,233,876
	Liabilities in Excess of Other Assets—(9.0)								(147,033,174	)

	Net Assets—100.0%							$	1,626,200,702

Footnotes to Statement of Investments

1. All or a portion of the security position has been segregated for collateral to cover borrowings. See Note 6 of the accompanying Notes.

2. Security represents the underlying municipal bond with respect to an inverse floating rate security held by the Fund. The bond was purchased by the Fund and subsequently transferred to a trust, which issued the related inverse floating rate security. See Note 1 of the accompanying Notes.

3. Zero coupon bond reflects effective yield on the date of purchase.

4. Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at a designated future date.

5. All or a portion of the security position is when-issued or delayed delivery to be delivered and settled after July 31, 2012. See Note 1 of the accompanying Notes.

6. This security is not accruing income because the issuer has missed an interest payment on it and/or is not anticipated to make future interest and/or principal payments. The rate shown is the original contractual interest rate. See Note 1 of the accompanying Notes.

To simplify the listings of securities, abbreviations are used per the table below:


ABAG	Association of Bay Area Governments	M-S-R	Modesto Irrigation District of the City of Santa Clara and the City of Redding
CDA	Communities Devel. Authority	OCEAA	Orange County Educational Arts Academy
COP	Certificates of Participation	ROLs	Residual Option Longs
CFD	Community Facilities District	SJHCN	St. Joseph Home Care Network
DRIVERS	Derivative Inverse Tax Exempt Receipt	SJHE	St. Joseph Hospital of Eureka
GO	General Obligation	SJHO	St. Joseph Hospital of Orange
HFA	Housing Finance Agency	SJHS	St. Joseph Health System
IDA	Industrial Devel. Agency	TASC	Tobacco Settlement Asset-Backed Bonds
INSD	Insured	UCLA	University of California at Los Angeles
ITEMECF	Industrial, Tourist, Educational, Medical and Environmental Community Facilities

See accompanying Notes to Financial Statements.


48				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF ASSETS AND LIABILITIES July 31, 2012


Assets
Investments, at value (cost $1,796,111,133)—see accompanying statement of investments	$	1,773,233,876
Cash		533,308
Receivables and other assets:
Interest		29,671,983
Shares of beneficial interest sold		5,604,563
Investments sold		1,765,117
Other		329,955
Total assets		1,811,138,802
Liabilities
Payables and other liabilities:
Payable for short-term floating rate notes issued (See Note 1)		154,480,000
Payable on borrowings (See Note 6)		22,400,000
Shares of beneficial interest redeemed		3,409,667
Investments purchased (including $1,446,914 purchased on a when-issued or delayed delivery basis)		2,464,306
Dividends		1,477,913
Distribution and service plan fees		314,335
Trustees’ compensation		238,727
Transfer and shareholder servicing agent fees		40,021
Shareholder communications		29,890
Interest expense on borrowings		3,207
Other		80,034
Total liabilities		184,938,100
Net Assets	$	1,626,200,702
Composition of Net Assets
Par value of shares of beneficial interest	$	186,051
Additional paid-in capital		2,177,602,236
Accumulated net investment income		6,386,627
Accumulated net realized loss on investments		(535,096,955	)
Net unrealized depreciation on investments		(22,877,257	)
Net Assets	$	1,626,200,702


49				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF ASSETS AND LIABILITIES Continued


Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of $1,194,157,318 and 136,545,075 shares of beneficial interest outstanding)	$	8.75
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price)	$	9.19
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $13,960,158 and 1,594,293 shares of beneficial interest outstanding)	$	8.76
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $320,828,321 and 36,793,992 shares of beneficial interest outstanding)	$	8.72
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets of $97,254,905 and 11,117,698 shares of beneficial interest outstanding)	$	8.75

See accompanying Notes to Financial Statements.


50				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF OPERATIONS For the Year Ended July 31, 2012


Investment Income
Interest	$	98,746,927
Other income		1,344
Total investment income		98,748,271
Expenses
Management fees		6,266,517
Distribution and service plan fees:
Class A		2,538,433
Class B		159,183
Class C		2,886,745
Transfer and shareholder servicing agent fees:
Class A		319,416
Class B		19,847
Class C		131,690
Class Y		19,096
Shareholder communications:
Class A		40,550
Class B		2,342
Class C		13,734
Class Y		2,003
Interest expense and fees on short-term floating rate notes issued (See Note 1)		1,625,902
Borrowing fees		554,840
Trustees’ compensation		35,191
Interest expense on borrowings		9,075
Custodian fees and expenses		8,123
Administration service fees		1,500
Other		188,932
Total expenses		14,823,119
Less waivers and reimbursements of expenses		(88,701	)
Net expenses		14,734,418
Net Investment Income		84,013,853
Realized and Unrealized Gain (Loss)
Net realized loss on investments		(50,092,309	)
Net change in unrealized appreciation/depreciation on investments		222,959,950
Net Increase in Net Assets Resulting from Operations	$	256,881,494

See accompanying Notes to Financial Statements.


51				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended July 31, 2012			Year Ended July 29, 2011¹
Operations
Net investment income	$	84,013,853		$	92,511,540
Net realized loss		(50,092,309	)		(89,690,056	)
Net change in unrealized appreciation/depreciation		222,959,950			40,457,853
Net increase in net assets resulting from operations		256,881,494			43,279,337
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A		(65,976,324	)		(69,960,200	)
Class B		(882,738	)		(1,281,046	)
Class C		(16,222,206	)		(17,649,225	)
Class Y		(3,555,458	)		(426,143	)
		(86,636,726	)		(89,316,614	)
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Class A		116,520,297			(143,096,318	)
Class B		(6,063,241	)		(5,895,891	)
Class C		15,583,592			(33,338,112	)
Class Y		71,125,223			17,868,958
		197,165,871			(164,461,363	)
Net Assets
Total increase (decrease)		367,410,639			(210,498,640	)
Beginning of period		1,258,790,063			1,469,288,703
End of period (including accumulated net investment income of $6,386,627 and $8,022,176, respectively)	$	1,626,200,702		$	1,258,790,063

1. July 29, 2011 represents the last business day of the Fund’s 2011 fiscal year. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.


52				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

STATEMENT OF CASH FLOWS For the Year Ended July 31, 2012


Cash Flows from Operating Activities
Net increase in net assets from operations	$	256,881,494
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Purchase of investment securities		(243,525,670	)
Proceeds from disposition of investment securities		123,847,491
Short-term investment securities, net		(28,183,057	)
Premium amortization		2,110,766
Discount accretion		(14,896,118	)
Net realized loss on investments		50,092,309
Net change in unrealized appreciation/depreciation on investments		(222,959,950	)
Change in assets:
Decrease in receivable for securities sold		5,455,439
Increase in other assets		(61,354	)
Increase in interest receivable		(4,040,466	)
Change in liabilities:
Increase in payable for securities purchased		2,464,306
Increase in other liabilities		14,345
Net cash used in operating activities		(72,800,465	)
Cash Flows from Financing Activities
Proceeds from borrowings		128,300,000
Payments on borrowings		(119,400,000	)
Payments on short-term floating rate notes issued		(40,295,000	)
Proceeds from shares sold		465,689,915
Payments on shares redeemed		(332,449,356	)
Cash distributions paid		(28,952,298	)
Net cash provided by financing activities		72,893,261
Net increase in cash		92,796
Cash, beginning balance		440,512
Cash, ending balance	$	533,308
Supplemental disclosure of cash flow information:
Noncash financing activities not included herein consist of reinvestment of dividends and distributions of $57,454,894.
Cash paid for interest on borrowings—$7,416.
Cash paid for interest on short-term floating rate notes issued-$1,625,902.

See accompanying Notes to Financial Statements.


53				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

FINANCIAL HIGHLIGHTS


	Year Ended July 31, 2012			Year Ended July 29, 2011¹			Year Ended July 30, 2010¹			Year Ended July 31,
Class A	Year Ended July 31, 2012			Year Ended July 29, 2011¹			Year Ended July 30, 2010¹			2009			2008

Per Share Operating Data
Net asset value, beginning of period	$	7.75		$	7.98		$	6.70		$	9.02		$	11.43
Income (loss) from investment operations:
Net investment income²		.51			.55			.57			.56			.57
Net realized and unrealized gain (loss)		1.01			(.25	)		1.27			(2.32	)		(2.43	)
Total from investment operations		1.52			.30			1.84			(1.76	)		(1.86	)
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.52	)		(.53	)		(.56	)		(.56	)		(.55	)
Net asset value, end of period	$	8.75		$	7.75		$	7.98		$	6.70		$	9.02
Total Return, at Net Asset Value³		20.31	%		4.11	%		27.95	%		(19.14	)%		(16.60	)%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,194,157			$951,318			$1,130,392			$883,104			$1,344,257
Average net assets (in thousands)		$1,037,577			$1,005,058			$1,082,612			$918,284			$1,584,343
Ratios to average net assets:⁴
Net investment income		6.18	%		7.21	%		7.34	%		8.21	%		5.69	%
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings		0.75	%		0.75	%		0.75	%		0.79	%		0.70	%
Interest and fees from borrowings		0.04	%		0.07	%		0.25	%		1.09	%		0.16	%
Interest and fees on short-term floating rate notes issued⁵		0.12	%		0.24	%		0.22	%		0.67	%		0.78	%
Total expenses		0.91	%		1.06	%		1.22	%		2.55	%		1.64	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.90	%		1.06	%		1.21	%		2.55	%		1.64	%
Portfolio turnover rate		10	%		27	%		23	%		32	%		45	%

1. July 29, 2011 and July 30, 2010 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

4. Annualized for periods less than one full year.

5. Interest and fee expense relates to the Fund’s liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions.

See accompanying Notes to Financial Statements.


54				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


	Year Ended July 31, 2012			Year Ended July 29, 2011¹			Year Ended July 30, 2010¹			Year Ended July 31,
Class B	Year Ended July 31, 2012			Year Ended July 29, 2011¹			Year Ended July 30, 2010¹			2009			2008

Per Share Operating Data
Net asset value, beginning of period	$	7.76		$	7.99		$	6.70		$	9.02		$	11.44
Income (loss) from investment operations:
Net investment income²		.44			.49			.51			.51			.49
Net realized and unrealized gain (loss)		1.01			(.25	)		1.28			(2.33	)		(2.45	)
Total from investment operations		1.45			.24			1.79			(1.82	)		(1.96	)
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.45	)		(.47	)		(.50	)		(.50	)		(.46	)
Net asset value, end of period	$	8.76		$	7.76		$	7.99		$	6.70		$	9.02
Total Return, at Net Asset Value³		19.26	%		3.22	%		27.03	%		(19.85	)%		(17.36	)%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$13,960			$18,138			$24,850			$22,476			$40,026
Average net assets (in thousands)		$15,887			$21,006			$25,296			$25,591			$51,641
Ratios to average net assets:⁴
Net investment income		5.39	%		6.35	%		6.50	%		7.35	%		4.85	%
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings		1.61	%		1.61	%		1.60	%		1.64	%		1.53	%
Interest and fees from borrowings		0.04	%		0.07	%		0.25	%		1.09	%		0.16	%
Interest and fees on short-term floating rate notes issued⁵		0.12	%		0.24	%		0.22	%		0.67	%		0.78	%
Total expenses		1.77	%		1.92	%		2.07	%		3.40	%		2.47	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.76	%		1.92	%		2.06	%		3.40	%		2.47	%
Portfolio turnover rate		10	%		27	%		23	%		32	%		45	%

1. July 29, 2011 and July 30, 2010 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Interest and fee expense relates to the Fund’s liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions.

See accompanying Notes to Financial Statements.


55				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

FINANCIAL HIGHLIGHTS Continued


	Year Ended July 31, 2012			Year Ended July 29, 2011¹			Year Ended July 30, 2010¹			Year Ended July 31,
Class C	Year Ended July 31, 2012			Year Ended July 29, 2011¹			Year Ended July 30, 2010¹			2009			2008

Per Share Operating Data
Net asset value, beginning of period	$	7.73		$	7.96		$	6.68		$	9.00		$	11.40
Income (loss) from investment operations:
Net investment income²		.44			.49			.51			.51			.49
Net realized and unrealized gain (loss)		1.01			(.25	)		1.27			(2.32	)		(2.42	)
Total from investment operations		1.45			.24			1.78			(1.81	)		(1.93	)
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.46	)		(.47	)		(.50	)		(.51	)		(.47	)
Net asset value, end of period	$	8.72		$	7.73		$	7.96		$	6.68		$	9.00
Total Return, at Net Asset Value³		19.31	%		3.33	%		27.06	%		(19.82	)%		(17.20	)%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$320,829			$270,347			$314,047			$242,207			$343,268
Average net assets (in thousands)		$288,500			$284,373			$302,114			$243,658			$402,977
Ratios to average net assets:⁴
Net investment income		5.42	%		6.43	%		6.57	%		7.47	%		4.91	%
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings		1.52	%		1.53	%		1.52	%		1.57	%		1.48	%
Interest and fees from borrowings		0.04	%		0.07	%		0.25	%		1.09	%		0.16	%
Interest and fees on short-term floating rate notes issued⁵		0.12	%		0.24	%		0.22	%		0.67	%		0.78	%
Total expenses		1.68	%		1.84	%		1.99	%		3.33	%		2.42	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.67	%		1.84	%		1.98	%		3.33	%		2.42	%
Portfolio turnover rate		10	%		27	%		23	%		32	%		45	%

1. July 29, 2011 and July 30, 2010 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Interest and fee expense relates to the Fund’s liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions.

See accompanying Notes to Financial Statements.


56				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Class Y	Year Ended July 31, 2012			Period Ended July 29, 2011¹
Per Share Operating Data
Net asset value, beginning of period	$	7.76		$	7.73
Income (loss) from investment operations:
Net investment income²		.52			.38
Net realized and unrealized gain		1.01			.01
Total from investment operations		1.53			.39
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.54	)		(.36	)
Net asset value, end of period	$	8.75		$	7.76
Total Return, at Net Asset Value³		20.43	%		5.41	%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$97,255			$18,987
Average net assets (in thousands)		$54,713			$8,939
Ratios to average net assets:⁴
Net investment income		6.28	%		7.60	%
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings		0.50	%		0.55	%
Interest and fees from borrowings		0.04	%		0.06	%
Interest and fees on short-term floating rate notes issued⁵		0.12	%		0.24	%
Total expenses		0.66	%		0.85	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.65	%		0.85	%
Portfolio turnover rate		10	%		27	%

1. For the period from November 29, 2010 (inception of offering) to July 29, 2011, which represents the last business day of the Fund’s 2011 fiscal year. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Interest and fee expense relates to the Fund’s liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions.

See accompanying Notes to Financial Statements.


57				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS

1. Significant Accounting Policies

Oppenheimer California Municipal Fund (the “Fund”) is registered under the Investment Company Act of 1940, as amended, as a non-diversified, open-end management investment company. The Fund’s investment objective is to seek as high a level of current interest income exempt from federal and California income taxes for individual investors as is consistent with preservation of capital. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).

The Fund offers Class A, Class C and Class Y shares, and previously offered Class B shares for new purchase through June 29, 2012. Subsequent to that date, no new purchases of Class B shares will be permitted, however reinvestment of dividend and/or capital gain distributions and exchanges of Class B shares into and from other Oppenheimer funds will be allowed. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class C shares are sold, and Class B shares were sold, without a front-end sales charge but may be subject to a contingent deferred sales charge (“CDSC”). Class Y shares are sold to certain institutional investors or intermediaries without either a front-end sales charge or a CDSC, however, the intermediaries may impose charges on their accountholders who beneficially own Class Y shares. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. Class A, B and C shares have separate distribution and/or service plans under which they pay fees. Class Y shares do not pay such fees. Class B shares will automatically convert to Class A shares 72 months after the date of purchase.

The following is a summary of significant accounting policies consistently followed by the Fund.

Previous Annual Periods. The last day of certain of the Fund’s prior fiscal years was the last day the New York Stock Exchange was open for trading. The Fund’s financial statements have been presented through that date to maintain consistency with the Fund’s net asset value calculations used for shareholder transactions.

Inverse Floating Rate Securities. The Fund invests in inverse floating rate securities that pay interest at a rate that varies inversely with short-term interest rates. Because inverse floating rate securities are leveraged instruments, the value of an inverse floating rate security will change more significantly in response to changes in interest rates and other market fluctuations than the market value of a conventional fixed-rate municipal security of similar maturity and credit quality, including the municipal bond underlying an inverse floating rate security.

An inverse floating rate security is created as part of a financial transaction referred to as a “tender option bond” transaction. In most cases, in a tender option bond transaction the Fund sells a fixed-rate municipal bond (the “underlying municipal bond”) to a broker dealer (the “sponsor”). The sponsor creates a trust (the “Trust”) into which it deposits the underlying municipal bond. The Trust then issues and sells short-term floating rate


58				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

securities with a fixed principal amount representing a senior interest in the underlying municipal bond to third parties and a residual, subordinate interest in the underlying municipal bond (referred to as an “inverse floating rate security”) to the Fund. The interest rate on the short-term floating rate securities resets periodically, usually weekly, to a prevailing market rate and holders of these securities are granted the option to tender their securities back to the Trust for repurchase at their principal amount plus accrued interest thereon (the “purchase price”) periodically, usually daily or weekly. A remarketing agent for the Trust is required to attempt to re-sell any tendered short-term floating rate securities to new investors for the purchase price. If the remarketing agent is unable to successfully re-sell the tendered short-term floating rate securities, a liquidity provider to the Trust (typically an affiliate of the sponsor) must contribute cash to the Trust to ensure that the tendering holders receive the purchase price of their securities on the repurchase date.

Because holders of the short-term floating rate securities are granted the right to tender their securities to the Trust for repurchase at frequent intervals for the purchase price, with such payment effectively guaranteed by the liquidity provider, the securities generally bear short-term rates of interest commensurate with money market instruments. When interest is paid on the underlying municipal bond to the Trust, such proceeds are first used to pay the Trust’s administrative expenses and accrued interest to holders of the short-term floating rate securities, with any remaining amounts being paid to the Fund, as the holder of the inverse floating rate security. Accordingly, the amount of such interest on the underlying municipal bond paid to the Fund is inversely related the rate of interest on the short-term floating rate securities. Additionally, because the principal amount of the short-term floating rate securities is fixed and is not adjusted in response to changes in the market value of the underlying municipal bond, any change in the market value of the underlying municipal bond is reflected entirely in a change to the value of the inverse floating rate security.

Typically, the terms of an inverse floating rate security grant certain rights to the Fund, as holder. For example, the Fund may have the right upon request to require that the Trust compel a tender of the short-term floating rate securities to facilitate the Fund’s acquisition of the underlying municipal bond. Following such a request, the Fund pays the Trust the purchase price of the short-term floating rate securities and a specified portion of any market value gain on the underlying municipal bond since its deposit into the Trust, which the Trust uses to redeem the short-term floating rate securities. The Trust then distributes the underlying municipal bond to the Fund. Similarly, the Fund may have the right to directly purchase the underlying municipal bond from the Trust by paying to the Trust the purchase price of the short-term floating rate securities and a specified portion of any market value gain on the underlying municipal bond since its deposit into the Trust, which the Trust uses to redeem the short-term floating rate securities. Through the exercise of either of these rights, the Fund can voluntarily terminate or “collapse” the Trust, terminate its investment in the related inverse floating rate security and obtain the underlying municipal bond. Additionally, the Fund also typically has the right to exchange


59				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS Continued

1. Significant Accounting Policies Continued

with the Trust (i) a principal amount of short-term floating rate securities held by the Fund for a corresponding additional principal amount of the inverse floating rate security or (ii) a principal amount of the inverse floating rate security held by the Fund for a corresponding additional principal amount of short-term floating rate securities (which are typically then sold to other investors). Through the exercise of this right, the Fund may increase (or decrease) the principal amount of short-term floating rate securities outstanding, thereby increasing (or decreasing) the amount of leverage provided by the short-term floating rate securities to the Fund’s investment exposure to the underlying municipal bond.

The Fund’s investments in inverse floating rate securities involve certain risks. As short-term interest rates rise, an inverse floating rate security produces less current income (and, in extreme cases, may pay no income) and as short-term interest rates fall, an inverse floating rate security produces more current income. Thus, if short-term interest rates rise after the issuance of the inverse floating rate security, any yield advantage is reduced or eliminated. All inverse floating rate securities entail some degree of leverage represented by the outstanding principal amount of the related short-term floating rate securities. The value of, and income earned on, an inverse floating rate security that has a higher degree of leverage will fluctuate more significantly in response to changes in interest rates and to changes in the market value of the related underlying municipal bond than that of an inverse floating rate security with a lower degree of leverage, and is more likely to be eliminated entirely under adverse market conditions. Changes in the value of an inverse floating rate security will also be more significant than changes in the market value of the related underlying municipal bond because the leverage provided by the related short-term floating rate securities increases the sensitivity of an inverse floating rate security to changes in interest rates and to the market value of the underlying municipal bond. An inverse floating rate security can be expected to underperform fixed-rate municipal bonds when the difference between long-term and short-term interest rates is decreasing (or is already small) or when long-term interest rates are rising, but can be expected to outperform fixed-rate municipal bonds when the difference between long-term and short-term interest rates is increasing (or is already large) or when long-term interest rates are falling. Additionally, a tender option bond transaction typically provides for the automatic termination or “collapse” of a Trust upon the occurrence of certain adverse events, usually referred to as “mandatory tender events” or “tender option termination events.” These events may include, among others, a credit ratings downgrade of the underlying municipal bond below a specified level, a decrease in the market value of the underlying municipal bond below a specified amount, a bankruptcy of the liquidity provider or the inability of the remarketing agent to re-sell to new investors short-term floating rate securities that have been tendered for repurchase by holders thereof. Following the occurrence of such an event, the underlying municipal bond is generally sold for current market value and the proceeds distributed to holders of the short-term floating rate securities and inverse floating rate security, with the holder of the inverse floating rate security (the Fund)


60				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

generally receiving the proceeds of such sale only after the holders of the short-term floating rate securities have received proceeds equal to the purchase price of their securities (and the liquidity provider is generally required to contribute cash to the Trust only in an amount sufficient to ensure that the holders of the short-term floating rate securities receive the purchase price of their securities in connection with such termination of the Trust). Following the occurrence of such events, the Fund could potentially lose the entire amount of its investment in the inverse floating rate security.

Finally, the Fund may enter into shortfall/reimbursement agreements with the liquidity provider of certain tender option bond transactions in connection with certain inverse floating rate securities held by the Fund. These agreements commit the Fund to reimburse the liquidity provider to the extent that the liquidity provider must provide cash to a Trust, including following the termination of a Trust resulting from the occurrence of a “mandatory tender event.” In connection with the occurrence of such an event and the termination of the Trust triggered thereby, the shortfall/reimbursement agreement will make the Fund liable for the amount of the negative difference, if any, between the liquidation value of the underlying municipal bond and the purchase price of the short-term floating rate securities issued by the Trust. Under the standard terms of a tender option bond transaction, absent such a shortfall/reimbursement agreement, the Fund, as holder of the inverse floating rate security, would not be required to make such a reimbursement payment to the liquidity provider. The Manager monitors the Fund’s potential exposure with respect to these agreements on a daily basis and intends to take action to terminate the Fund’s investment in related inverse floating rate securities, if it deems it appropriate to do so. As of July 31, 2012, the Fund’s maximum exposure under such agreements is estimated at $68,690,000.

When the Fund creates an inverse floating rate security in a tender option bond transaction by selling an underlying municipal bond to a sponsor for deposit into a Trust, the transaction is considered a secured borrowing for financial reporting purposes. As a result of such accounting treatment, the Fund includes the underlying municipal bond on its Statement of Investments and as an asset on its Statement of Assets and Liabilities (but does not separately include the related inverse floating rate security on either). The Fund also includes a liability on its Statement of Assets and Liabilities equal to the outstanding principal amount and accrued interest on the related short-term floating rate securities issued by the Trust. Interest on the underlying municipal bond is recorded as investment income on the Fund’s Statement of Operations, while interest payable on the related short-term floating rate securities is recorded as interest expense. At July 31, 2012, municipal bond holdings with a value of $304,608,776 shown on the Fund’s Statement of Investments are held by such Trusts and serve as the underlying municipal bonds for the related $154,480,000 in short-term floating rate securities issued and outstanding at that date.


61				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS Continued

1. Significant Accounting Policies Continued

At July 31, 2012, the inverse floating rate securities associated with tender option bond transactions accounted for as secured borrowings were as follows:


Principal Amount		Inverse Floater¹	Coupon Rate²			Maturity Date		Value
	$2,500,000	Anaheim, CA Public Financing Authority ROLs³		15.980	%		10/1/39	$	3,873,400
	5,000,000	Bay Area, CA Toll Authority ROLs		8.736			4/1/43		6,538,400
	5,000,000	Bay Area, CA Toll Authority (San Francisco Bay Area) ROLs³		8.954			4/1/44		6,591,400
	5,000,000	CA Dept. of Water Resources (Center Valley) ROLs³		8.350			12/1/35		6,944,700
	7,110,000	CA Health Facilities Financing Authority (Providence Health & Service/Provident Health System-Oregon Obligated Group)		8.715			10/1/39		9,154,054
	2,840,000	Citrus, CA Community College District DRIVERS		16.436			6/1/31		4,677,594
	7,500,000	East Bay, CA Municipal Utility District (Water System) ROLs³		7.914			6/1/36		10,053,450
	5,000,000	Foothill, CA De Anza Community College District		7.914			8/1/40		6,588,600
	1,290,000	Grossmont, CA Union High School District ROLs³		16.184			8/1/30		2,214,930
	1,225,000	Grossmont, CA Union High School District ROLs³		16.213			8/1/31		2,055,599
	5,000,000	Grossmont, CA Union High School District ROLs³		8.786			8/1/45		6,786,700
	7,500,000	Los Angeles, CA Community College District ROLs³		7.864			8/1/33		9,465,750
	2,500,000	Los Angeles, CA Community College District ROLs³		18.043			8/1/33		4,695,400
	4,735,000	Los Angeles, CA Dept. of Airports (Los Angeles International Airport) DRIVERS		11.906			5/15/24		6,555,655
	3,335,000	Los Angeles, CA Dept. of Airports (Los Angeles International Airport) DRIVERS		12.222			5/15/26		4,619,242
	3,665,000	Los Angeles, CA Dept. of Airports (Los Angeles International Airport) DRIVERS		12.233			5/15/27		5,057,627
	3,365,000	Los Angeles, CA Dept. of Airports (Los Angeles International Airport) DRIVERS		12.228			5/15/28		4,604,262
	3,405,000	Los Angeles, CA Dept. of Airports ROLs		12.402			5/15/25		4,745,208
	1,500,000	Los Angeles, CA Dept. of Water & Power DRIVERS		8.492			7/1/34		1,970,790
	6,000,000	Los Angeles, CA Dept. of Water & Power DRIVERS		8.492			7/1/38		7,723,440
	8,150,000	Los Angeles, CA Harbor Dept. DRIVERS		8.283			8/1/34		10,588,806
	6,170,000	San Diego, CA Community College District ROLs³		7.911			5/1/30		7,738,969
	2,500,000	San Diego, CA Regional Building Authority (County Operations Center & Annex) DRIVERS		16.182			2/1/36		3,789,200
	5,000,000	San Marcos, CA Unified School District ROLs³		8.350			8/1/31		6,741,600


62				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Principal Amount		Inverse Floater¹	Coupon Rate²			Maturity Date		Value
	$5,000,000	San Mateo, CA Union High School District ROLs³		7.914	%		9/1/42	$	6,354,000

								$	150,128,776

1. For a list of abbreviations used in the Inverse Floater table see the Portfolio Abbreviations table at the end of the Statement of Investments.

2. Represents the current interest rate for the inverse floating rate security.

3. Represents an inverse floating rate security that is subject to a shortfall/reimbursement agreement.

The Fund may also purchase an inverse floating rate security created as part of a tender option bond transaction not initiated by the Fund when a third party, such as a municipal issuer or financial institution, transfers an underlying municipal bond to a Trust. For financial reporting purposes, the Fund includes the inverse floating rate security related to such transaction on its Statement of Investments and as an asset on its Statement of Assets and Liabilities, and interest on the security is recorded as investment income on the Fund’s Statement of Operations.

The Fund may invest in inverse floating rate securities with any degree of leverage (as measured by the outstanding principal amount of related short-term floating rate securities). However, the Fund may only expose up to 20% of its total assets to the effects of leverage from its investments in inverse floating rate securities. This limitation is measured by comparing the aggregate principal amount of the short-term floating rate securities that are related to the inverse floating rate securities held by the Fund to the total assets of the Fund. The Fund’s exposure to the effects of leverage from its investments in inverse floating rate securities amounts to $154,480,000 or 8.53% of its total assets as of July 31, 2012.

Securities on a When-Issued or Delayed Delivery Basis. The Fund may purchase securities on a “when-issued” basis, and may purchase or sell securities on a “delayed delivery” basis. “When-issued” or “delayed delivery” refers to securities whose terms and indenture are available and for which a market exists, but which are not available for immediate delivery. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis normally takes place within six months and possibly as long as two years or more after the trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The purchase of securities on a when-issued basis may increase the volatility of the Fund’s net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. When the Fund engages in when-issued or delayed delivery transactions, it relies on the buyer or seller, as the case may be, to complete the transaction. Their failure to do so may cause the Fund to lose the opportunity to obtain or dispose of the security at a price and yield it considers advantageous. The Fund may also sell securities that it purchased on a when-issued basis or forward commitment prior to settlement of the original purchase.


63				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS Continued

1. Significant Accounting Policies Continued

As of July 31, 2012, the Fund had purchased securities issued on a when-issued or delayed delivery basis as follows:


	When-Issued or Delayed Delivery Basis Transactions
Purchased securities	$	1,446,914

Credit Risk. The Fund invests in high-yield, non-investment-grade bonds, which may be subject to a greater degree of credit risk. Credit risk relates to the ability of the issuer to meet interest or principal payments or both as they become due. The Fund may acquire securities that have missed an interest payment, and is not obligated to dispose of securities whose issuers or underlying obligors subsequently miss an interest payment. Information concerning securities not accruing interest as of July 31, 2012 is as follows:


Cost	$	5,200,925
Market Value	$	3,531,935
Market Value as a % of Net Assets		0.22	%

Concentration Risk. There are certain risks arising from geographic concentration in any state, commonwealth or territory. Certain economic, regulatory or political developments occurring in the state, commonwealth or territory may impair the ability of certain issuers of municipal securities to pay principal and interest on their obligations.

Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.

Federal Taxes. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund’s tax return filings generally remain open for the three preceding fiscal reporting period ends.

The tax components of capital shown in the following table represent distribution requirements the Fund must satisfy under the income tax regulations, losses the Fund may be able to offset against income and gains realized in future years and unrealized appreciation or depreciation of securities and other investments for federal income tax purposes.


64				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Undistributed Net Investment Income	Undistributed Long-Term Gain		Accumulated Loss Carryforward^1,2,3		Net Unrealized Depreciation Based on Cost of Securities and Other Investments for Federal Income Tax Purposes
$7,106,213	$	—	$	531,109,054	$	26,865,158

1. As of July 31, 2012, the Fund had $531,109,054 of net capital loss carryforwards available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. Details of the capital loss carryforwards are included in the table below. Capital loss carryovers with no expiration, if any, must be utilized prior to those with expiration dates.


Expiring
2015	$	2,066,773
2016		33,667,971
2017		100,477,817
2018		223,689,715
2019		31,408,386
No expiration		139,798,392

Total	$	531,109,054

2. During the fiscal year ended July 31, 2012, the Fund did not utilize any capital loss carryforward.

3. During the fiscal year ended July 29, 2011, the Fund did not utilize any capital loss carryforward.

Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund.

Accordingly, the following amounts have been reclassified for July 31, 2012. Net assets of the Fund were unaffected by the reclassifications.


Increase to Accumulated Net Investment Income	Increase to Accumulated Net Realized Loss on Investments
$987,324	$	987,324

The tax character of distributions paid during the years ended July 31, 2012 and July 31, 2011 was as follows:


	Year Ended July 31, 2012		Year Ended July 31, 2011
Distributions paid from:
Exempt-interest dividends	$	86,076,618	$	88,965,190
Ordinary income		560,108		351,424

Total	$	86,636,726	$	89,316,614

The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax


65				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS Continued

1. Significant Accounting Policies Continued

purposes as of July 31, 2012 are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss.


Federal tax cost of securities	$	1,647,637,314¹

Federal tax cost of other investments
Gross unrealized appreciation	$	141,794,726
Gross unrealized depreciation		(168,659,884	)

Net unrealized depreciation	$	(26,865,158	)

1. The Federal tax cost of securities does not include cost of $152,461,720, which has otherwise been recognized for financial reporting purposes, related to bonds placed into trusts in conjunction with certain investment transactions. See the Inverse Floating Rate Securities note above.

Trustees’ Compensation. The Fund has adopted an unfunded retirement plan (the “Plan”) for the Fund’s independent trustees. Benefits are based on years of service and fees paid to each trustee during their period of service. The Plan was frozen with respect to adding new participants effective December 31, 2006 (the “Freeze Date”) and existing Plan Participants as of the Freeze Date will continue to receive accrued benefits under the Plan. Active independent trustees as of the Freeze Date have each elected a distribution method with respect to their benefits under the Plan. During the year ended July 31, 2012, the Fund’s projected benefit obligations, payments to retired trustees and accumulated liability were as follows:


Projected Benefit Obligations Increased	$	14,766
Payments Made to Retired Trustees		17,615
Accumulated Liability as of July 31, 2012		129,457

The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of “Other” within the asset section of the Statement of Assets and Liabilities. Deferral of trustees’ fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund’s assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the compensation deferral plan.

Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income distributions, if any, are declared daily and paid monthly. Capital gain distributions, if any, are declared and paid annually.


66				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

Investment Income. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily.

Custodian Fees. “Custodian fees and expenses” in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdraft at a rate equal to the 1 Month LIBOR Rate plus 2.00%. The “Reduction to custodian expenses” line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

Indemnifications. The Fund’s organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

2. Securities Valuation

The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the “Exchange”), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading.

The Fund’s Board has adopted procedures for the valuation of the Fund’s securities and has delegated the day-to-day responsibility for valuation determinations under those procedures to the Manager. The Manager has established a Valuation Committee which is responsible for determining a “fair valuation” for any security for which market quotations are not “readily available.” The Valuation Committee’s fair valuation determinations are subject to review, approval and ratification by the Fund’s Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined.


67				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS Continued

2. Securities Valuation Continued

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Securities traded on a registered U.S. securities exchange (including exchange-traded derivatives other than futures and futures options) are valued based on the last sale price of the security reported on the principal exchange on which it is traded, prior to the time when the Fund’s assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the current day’s closing “bid” and “asked” prices, and if not, at the current day’s closing bid price. A security of a foreign issuer traded on a foreign exchange but not listed on a registered U.S. securities exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the third party pricing service used by the Manager, prior to the time when the Fund’s assets are valued. If the last sale price is unavailable, the security is valued at the most recent official closing price on the principal exchange on which it is traded. If the last sales price or official closing price for a foreign security is not available, the security is valued at the mean between the bid and asked price per the exchange or, if not available from the exchange, obtained from two dealers. If bid and asked prices are not available from either the exchange or two dealers, the security is valued by using one of the following methodologies (listed in order of priority); (1) using a bid from the exchange, (2) the mean between the bid and asked price as provided by a single dealer, or (3) a bid from a single dealer.

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

Corporate and government debt securities (of U.S. or foreign issuers) and municipal debt securities, event-linked bonds, loans, mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities are valued at the mean between the “bid” and “asked” prices utilizing evaluated prices obtained from third party pricing services or broker-dealers who may use matrix pricing methods to determine the evaluated prices.

Short-term money market type debt securities with a remaining maturity of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. Short-term debt securities with a remaining maturity in excess of sixty days are valued at the mean between the “bid” and “asked” prices utilizing evaluated prices obtained from third party pricing services or broker-dealers.


68				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

If a market value or price cannot be determined for a security using the methodologies described above, or if, in the “good faith” opinion of the Manager, the market value or price obtained does not constitute a “readily available market quotation,” or a significant event has occurred that would materially affect the value of the security the security is fair valued either (i) by a standardized fair valuation methodology applicable to the security type or the significant event as previously approved by the Valuation Committee and the Fund’s Board or (ii) as determined in good faith by the Manager’s Valuation Committee. The Valuation Committee considers all relevant facts that are reasonably available, through either public information or information available to the Manager, when determining the fair value of a security. Fair value determinations by the Manager are subject to review, approval and ratification by the Fund’s Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined. Those fair valuation standardized methodologies include, but are not limited to, valuing securities at the last sale price or initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be further adjusted for any discounts related to security-specific resale restrictions. When possible, such methodologies use observable market inputs such as unadjusted quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities nor can it be assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.

To assess the continuing appropriateness of security valuations, the Manager, or its third party service provider who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and sale prices to the current day prices and challenges those prices exceeding certain tolerance levels with the third party pricing service or broker source. For those securities valued by fair valuations, whether through a standardized fair valuation methodology or a fair valuation determination, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.


69				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS Continued

2. Securities Valuation Continued

Classifications

Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Various data inputs are used in determining the value of each of the Fund’s investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards:

Level 1—unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

Level 2—inputs other than unadjusted quoted prices that are observable for the asset or liability (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.)

Level 3—significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of July 31, 2012 based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value
Assets Table
Investments, at Value:
Municipal Bonds and Notes
California	$	—	$	1,651,049,829	$	—	$	1,651,049,829
U.S. Possessions		—		122,184,047		—		122,184,047

Total Assets	$	—	$	1,773,233,876	$	—	$	1,773,233,876

Currency contracts and forwards, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract’s value from trade date. Futures, if any, are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. All additional assets and liabilities included in the above table are reported at their market value at measurement date.

There have been no significant changes to the fair valuation methodologies of the Fund during the period.


70				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

3. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Year Ended July 31, 2012						Year Ended July 29, 2011¹
	Shares			Amount			Shares			Amount
Class A
Sold		40,316,231		$	330,174,508			28,047,032		$	215,150,734
Dividends and/or distributions reinvested		5,414,883			44,404,478			5,273,966			40,405,655
Redeemed		(31,861,513	)		(258,058,689	)		(52,320,262	)		(398,652,707	)

Net increase (decrease)		13,869,601		$	116,520,297			(18,999,264	)	$	(143,096,318	)


Class B
Sold		213,431		$	1,729,614			225,030		$	1,776,294
Dividends and/or distributions reinvested		82,651			677,578			112,577			863,826
Redeemed		(1,038,255	)		(8,470,433	)		(1,112,433	)		(8,536,011	)

Net decrease		(742,173	)	$	(6,063,241	)		(774,826	)	$	(5,895,891	)


Class C
Sold		6,695,347		$	54,968,716			5,876,007		$	45,476,574
Dividends and/or distributions reinvested		1,304,195			10,655,394			1,278,124			9,768,627
Redeemed		(6,164,821	)		(50,040,518	)		(11,656,830	)		(88,583,313	)

Net increase (decrease)		1,834,721		$	15,583,592			(4,502,699	)	$	(33,338,112	)


Class Y
Sold		10,183,767		$	83,383,497			2,602,101		$	19,019,100
Dividends and/or distributions reinvested		207,366			1,717,444			39,338			298,366
Redeemed		(1,721,629	)		(13,975,718	)		(193,245	)		(1,448,508	)

Net increase		8,669,504		$	71,125,223			2,448,194		$	17,868,958

1. For the year ended July 29, 2011, for Class A, B, and C shares, and for the period from November 29, 2010 (inception of offering) to July 29, 2011 for Class Y shares.

4. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the year ended July 31, 2012, were as follows:


	Purchases		Sales
Investment securities	$	243,525,670	$	123,847,491


71				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS Continued

5. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $200 million	0.60	%
Next $100 million	0.55
Next $200 million	0.50
Next $250 million	0.45
Next $250 million	0.40
Over $1 billion	0.35

Administration Service Fees. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund’s tax returns.

Transfer Agent Fees. OppenheimerFunds Services (“OFS”), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the year ended July 31, 2012, the Fund paid $488,577 to OFS for services to the Fund.

Additionally, Class Y shares are subject to minimum fees of $10,000 annually for assets of $10 million or more. The Class Y shares are subject to the minimum fees in the event that the per account fee does not equal or exceed the applicable minimum fees. OFS may voluntarily waive the minimum fees.

Distribution and Service Plan (12b-1) Fees. Under its General Distributor’s Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the “Distributor”) acts as the Fund’s principal underwriter in the continuous public offering of the Fund’s classes of shares.

Service Plan for Class A Shares. The Fund has adopted a Service Plan (the “Plan”) for Class A shares under Rule 12b-1 of the Investment Company Act of 1940. Under the Plan, the Fund reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made periodically at an annual rate of up to 0.25% of the daily net assets of Class A shares of the Fund. The Distributor currently uses all of those fees to pay dealers, brokers, banks and other financial institutions periodically for providing personal service and maintenance of accounts of their customers that hold Class A shares. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent periods. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.

Distribution and Service Plans for Class B and Class C Shares. The Fund has adopted Distribution and Service Plans (the “Plans”) for Class B and Class C shares under Rule 12b-1 of the Investment Company Act of 1940 to compensate the Distributor for its services in connection with the distribution of those shares and servicing accounts. Under the Plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on Class B and Class C shares daily net assets. The Distributor also receives a service fee of 0.25% per year


72				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

under each plan. If either the Class B or Class C plan is terminated by the Fund or by the shareholders of a class, the Board of Trustees and its independent trustees must determine whether the Distributor shall be entitled to payment from the Fund of all or a portion of the service fee and/or asset-based sales charge in respect to shares sold prior to the effective date of such termination. Fees incurred by the Fund under the Plans are detailed in the Statement of Operations. The Distributor determines its uncompensated expenses under the Plans at calendar quarter ends. The Distributor’s aggregate uncompensated expenses under the Plans at June 30, 2012 were as follows:


Class B	$	2,334,175
Class C		7,467,472

Sales Charges. Front-end sales charges and contingent deferred sales charges (“CDSC”) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. The sales charges retained by the Distributor from the sale of shares and the CDSC retained by the Distributor on the redemption of shares is shown in the following table for the period indicated.

Year Ended

Class A

Front-End
Sales Charges
Retained by
Distributor

Class A
Contingent
Deferred
Sales Charges
Retained by
Distributor

Class B

Contingent
Deferred
Sales Charges
Retained by
Distributor

Class C
Contingent
Deferred
Sales Charges
Retained by
Distributor

July 31, 2012

301,046

—

46,581

16,727

Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to reimburse the Fund for a portion of the legal costs and fees incurred in connection with the pending litigation matters discussed in the “Pending Litigation” note which appears later in this report. During the year ended July 31, 2012, the Manager reimbursed the Fund $88,701 for legal costs and fees.

OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for Classes B, C and Y shares to 0.35% of average annual net assets per class; this limit also applied to Class A shares prior to October 1, 2011. Effective October 1, 2011, OFS has voluntarily agreed to limit its fees for Class A shares to 0.30% of average annual net assets of the class.

Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.

6. Borrowings

The Fund can borrow money from banks in amounts up to one third of its total assets (including the amount borrowed) less all liabilities and indebtedness other than borrowings (meaning that the value of those assets must be at least 300% of the amount borrowed). The Fund can use those borrowings for investment-related purposes such as purchasing portfolio securities. The Fund also may borrow to meet redemption obligations


73				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS Continued

6. Borrowings Continued

or for temporary and emergency purposes. When the Fund invests borrowed money in portfolio securities, it is using a speculative investment technique known as leverage and changes in the value of the Fund’s investments will have a larger effect on its share price than if it did not borrow because of the effect of leverage.

The Fund can also use the borrowings for other investment-related purposes, including in connection with the Fund’s inverse floater investments as discussed in Note 1. The Fund may use the borrowings to reduce the leverage amount of, or unwind or “collapse” trusts that issued “inverse floaters” owned by the Fund, or in circumstances in which the Fund has entered into a shortfall and forbearance agreement with the sponsor of the inverse floater trust to meet the Fund’s obligation to reimburse the sponsor of the inverse floater for the difference between the liquidation value of the underlying bond and the amount due to holders of the short-term floating rate notes issued by the Trust. See the discussion in Note 1 (Inverse Floating Rate Securities) for additional information.

The Fund will pay interest and may pay other fees in connection with loans. If the Fund does borrow, it will be subject to greater expenses than funds that do not borrow. The interest on borrowed money and the other fees incurred in conjunction with loans are an expense that might reduce the Fund’s yield and return. Expenses incurred by the Fund with respect to interest on borrowings and commitment fees are disclosed separately or as other expenses on the Statement of Operations.

The Fund entered into a Revolving Credit and Security Agreement (the “Agreement”) with conduit lenders and Citibank N.A. which enables it to participate with certain other Oppenheimer funds in a committed, secured borrowing facility that permits borrowings of up to $2.0 billion, collectively, by the Oppenheimer Rochester Funds. To secure the loan, the Fund pledges investment securities in accordance with the terms of the Agreement. Securities held in collateralized accounts to cover these borrowings are noted in the Statement of Investments. Interest is charged to the Fund, based on its borrowings, at current commercial paper issuance rates (0.3384% as of July 31, 2012). The Fund pays additional fees annually to its lender on its outstanding borrowings to manage and administer the facility and is allocated its pro-rata share of an annual structuring fee and ongoing commitment fees both of which are based on the total facility size. Total fees and interest that are included in expenses on the Fund’s Statement of Operations related to its participation in the borrowing facility during the year ended July 31, 2012 equal 0.03% of the Fund’s average net assets on an annualized basis. The Fund has the right to prepay such loans and terminate its participation in the conduit loan facility at any time upon prior notice.

As of July 31, 2012, the Fund had borrowings outstanding at an interest rate of 0.3384%. Details of the borrowings for the year ended July 31, 2012 are as follows:


Average Daily Loan Balance	$	2,839,891
Average Daily Interest Rate		0.314	%
Fees Paid	$	403,198
Interest Paid	$	7,416


74				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

7. Reverse Repurchase Agreements

The Fund may engage in reverse repurchase agreements. A reverse repurchase agreement is the sale of one or more securities to a counterparty at an agreed-upon purchase price with the simultaneous agreement to repurchase those securities on a future date at a higher repurchase price. The repurchase price represents the repayment of the purchase price and interest accrued thereon over the term of the repurchase agreement. The cash received by the Fund in connection with a reverse repurchase agreement may be used for investment-related purposes such as purchasing portfolio securities or for other purposes such as those described in the preceding “Borrowings” note.

The Fund entered into a Committed Repurchase Transaction Facility (the “Facility”) with J.P. Morgan Securities LLC (the “counterparty’) which enables it to participate with certain other Oppenheimer funds in a committed reverse repurchase agreement facility that permits aggregate outstanding reverse repurchase agreements of up to $750 million, collectively. Interest is charged to the Fund on the purchase price of outstanding reverse repurchase agreements at current LIBOR rates plus an applicable spread. The Fund is also allocated its pro-rata share of an annual structuring fee based on the total Facility size and ongoing commitment fees based on the total unused amount of the Facility. The Fund retains the economic exposure to fluctuations in the value of securities subject to reverse repurchase agreements under the Facility and therefore these transactions are considered secured borrowings for financial reporting purposes. The Fund also continues to receive the economic benefit of interest payments received on securities subject to reverse repurchase agreements, in the form of a direct payment from the counterparty. These payments are included in interest income on the Statement of Operations. Total fees and interest related to the Fund’s participation in the Facility during the year ended July 31, 2012 are included in expenses on the Fund’s Statement of Operations and equal 0.01% of the Fund’s average net assets on an annualized basis.

The securities subject to reverse repurchase agreements under the Facility are valued on a daily basis. To the extent this value, after adjusting for certain margin requirements of the Facility, exceeds the cash proceeds received, the Fund may request the counterparty to return securities equal in margin value to this excess. To the extent that the cash proceeds received exceed the margin value of the securities subject to the transaction, the counterparty may request additional securities from the Fund. The Fund has the right to declare the first or fifteenth day of any calendar month as the repurchase date for any outstanding reverse repurchase agreement upon delivery of advanced notification and may also recall any security subject to such a transaction by substituting eligible securities of equal or greater margin value according to the Facility’s terms.

The Fund executed no transactions under the Facility during the year ended July 31, 2012.

8. Pending Litigation

Since 2009, a number of class action, derivative and individual lawsuits have been pending in federal and state courts against OppenheimerFunds, Inc., the Fund’s investment advisor


75				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

NOTES TO FINANCIAL STATEMENTS Continued

8. Pending Litigation Continued

(the “Manager”), OppenheimerFunds Distributor, Inc., the Fund’s principal underwriter and distributor (the “Distributor”), and certain funds—including the Fund—advised by the Manager and distributed by the Distributor (the “Defendant Funds”). Several of these lawsuits also name as defendants certain officers and current and former trustees of the respective Defendant Funds. The lawsuits raise claims under federal securities law and allege, among other things, that the disclosure documents of the respective Defendant Funds contained misrepresentations and omissions and that the respective Defendant Funds’ investment policies were not followed. The plaintiffs in these actions seek unspecified damages, equitable relief and awards of attorneys’ fees and litigation expenses. The Defendant Funds’ Boards of Trustees have also engaged counsel to represent the Funds and the present and former Independent Trustees named in those suits.

Other class action and individual lawsuits have been filed since 2008 in various state and federal courts against the Manager and certain of its affiliates by investors seeking to recover investments they allegedly lost as a result of the “Ponzi” scheme run by Bernard L. Madoff and his firm, Bernard L. Madoff Investment Securities, LLC (“BLMIS”). Plaintiffs in these suits allege that they suffered losses as a result of their investments in several funds managed by an affiliate of the Manager and assert a variety of claims, including breach of fiduciary duty, fraud, negligent misrepresentation, unjust enrichment, and violation of federal and state securities laws and regulations, among others. They seek unspecified damages, equitable relief and awards of attorneys’ fees and litigation expenses. Neither the Distributor, nor any of the Oppenheimer mutual funds, their independent trustees or directors are named as defendants in these lawsuits. None of the Oppenheimer mutual funds invested in any funds or accounts managed by Madoff or BLMIS. On February 28, 2011, a stipulation of partial settlement of three groups of consolidated putative class action lawsuits relating to these matters was filed in the U.S. District Court for the Southern District of New York. On August 19, 2011, the court entered an order and final judgment approving the settlement as fair, reasonable and adequate. In September 2011, certain parties filed notices of appeal from the court’s order approving the settlement. On July 29, 2011, a stipulation of settlement between certain affiliates of the Manager and the Trustee appointed under the Securities Investor Protection Act to liquidate BLMIS was filed in the U.S. Bankruptcy Court for the Southern District of New York to resolve purported preference and fraudulent transfer claims by the Trustee. On September 22, 2011, the court entered an order approving the settlement as fair, reasonable and adequate. In October 2011, certain parties filed notices of appeal from the court’s order approving the settlement. In June 2012, the court granted appellees’ motion to dismiss the appeal. The aforementioned settlements do not resolve other outstanding lawsuits against the Manager and its affiliates relating to BLMIS.

On April 16, 2010, a lawsuit was filed in New York state court against the Manager, an affiliate of the Manager and AAArdvark IV Funding Limited (“AAArdvark IV”), an entity advised by the Manager’s affiliate, in connection with investments made by the plaintiffs in AAArdvark IV. Plaintiffs allege breach of contract against the defendants and seek


76				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

compensatory damages, costs and disbursements, including attorney fees. On July 15, 2011, a lawsuit was filed in New York state court against the Manager, an affiliate of the Manager and AAArdvark Funding Limited (“AAArdvark I”), an entity advised by the Manager’s affiliate, in connection with investments made by the plaintiffs in AAArdvark I. The complaint alleges breach of contract against the defendants and seeks compensatory damages, costs and disbursements, including attorney fees. On November 9, 2011, a lawsuit was filed in New York state court against the Manager, an affiliate of the Manager and AAArdvark XS Funding Limited (“AAArdvark XS”), an entity advised by the Manager’s affiliate, in connection with investments made by the plaintiffs in AAArdvark XS. The complaint alleges breach of contract against the defendants and seeks compensatory damages, costs and disbursements, including attorney fees.

The Manager believes the lawsuits and appeals described above are without legal merit and, with the exception of actions it has settled, is defending against them vigorously. While it is premature to render any opinion as to the outcome in these lawsuits, or whether any costs that the Defendant Funds may bear in defending the suits might not be reimbursed by insurance, the Manager believes that these suits should not impair the ability of the Manager or the Distributor to perform their respective duties to the Fund, and that the outcome of all of the suits together should not have any material effect on the operations of any of the Oppenheimer mutual funds.


77				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer California Municipal Fund:

We have audited the accompanying statement of assets and liabilities of Oppenheimer California Municipal Fund, including the statement of investments, as of July 31, 2012, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of July 31, 2012, by correspondence with the custodian, and brokers, or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer California Municipal Fund as of July 31, 2012, the results of its operations and cash flows for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMGLLP

Denver, Colorado

September 17, 2012


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CREDIT ALLOCATION Unaudited

This table provides further information regarding the “Unrated” securities category shown in the “Credit Allocation-Credit Rating Breakdown” table located earlier in this report. The third column below titled “Unrated by a NRSRO; Internally Rated by the Manager” shows the credit allocation of Unrated securities as determined by the Fund’s investment adviser, OppenheimerFunds, Inc. (the “Manager”). These internally rated securities are not rated by any nationally recognized statistical rating organization (NRSRO), such as Standard & Poor’s.

The Manager determines the credit allocation of these securities using its own credit analysis to assign ratings using a rating scale or categories similar to that used by S&P. The Manager is not required to, and does not attempt to, employ the same credit analysis process, procedures or methodologies used by S&P or any other NRSRO in assigning a credit rating to an Unrated security. There can be no assurance, nor is it intended, that the Manager’s credit analysis process is consistent or comparable with the credit analysis process that would be used by S&P or any other NRSRO if it were to rate the same security. Securities rated investment-grade or above by the Manager may or may not be the equivalent to an investment grade or above rating assigned by an NRSRO. More information about the Manager’s internal credit analysis process for Unrated (or internally-rated) securities and securities ratings is contained in the Fund’s Prospectus and Statement of Additional Information.

The second column below titled “NRSRO-Rated” shows the ratings by nationally recognized statistical rating organizations (NRSROs), such as Standard & Poor’s. For securities rated by an NRSRO other than S&P, the Manager converts that rating to the equivalent S&P rating. If two or more NRSROs have assigned a rating to a security, the highest rating is used.

The credit allocations below are as of July 31, 2012 and are subject to change. The percentages are based on the market value of the Fund’s securities as of July 31, 2012 and are subject to change; market value does not include cash. AAA, AA, A, and BBB are investment-grade ratings.


	NRSRO-Rated			Unrated by a NRSRO; Internally Rated by the Manager			Total
AAA		2.7	%		0.0	%		2.7	%
AA		23.0			0.0			23.0
A		17.4			0.1			17.5
BBB		19.2			17.1			36.3
BB or lower		8.3			12.2			20.5

Total		70.6	%		29.4	%		100.0	%


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FEDERAL INCOME TAX INFORMATION Unaudited

In early 2012, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2011.

None of the dividends paid by the Fund during the fiscal year ended July 31, 2012 are eligible for the corporate dividend-received deduction. 99.35% of the dividends were derived from interest on municipal bonds and are not subject to federal income taxes. To the extent a shareholder is subject to any state or local tax laws, some or all of the dividends received may be taxable.

The foregoing information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance.


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PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;

UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Fund’s website at oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund’s Form N-Q filings are available on the SEC’s website at www.sec.gov. Those forms may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Householding—Delivery of Shareholder Documents

This is to inform you about OppenheimerFunds’ “householding” policy. If more than one member of your household maintains an account in a particular fund, OppenheimerFunds will mail only one copy of the fund’s prospectus (or, if available, the fund’s summary prospectus), annual and semiannual report and privacy policy. The consolidation of these mailings, called householding, benefits your fund through reduced mailing expense, and benefits you by reducing the volume of mail you receive from OppenheimerFunds. Householding does not affect the delivery of your account statements.

Please note that we will continue to household these mailings for as long as you remain an OppenheimerFunds shareholder, unless you request otherwise. If you prefer to receive multiple copies of these materials, please call us at 1.800.CALL-OPP (225-5677). You may also notify us in writing or via email. We will begin sending you individual copies of the prospectus (or, if available, the summary prospectus), reports and privacy policy within 30 days of receiving your request to stop householding.


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TRUSTEES AND OFFICERS Unaudited


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen

INDEPENDENT TRUSTEES		The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an annual term, or until his or her resignation, retirement, death or removal.

Brian F. Wruble, Chairman of the Board of Trustees (since 2007), Trustee (since 2005) Age: 69		Director of Community Foundation of the Florida Keys (non-profit) (July 2012-June 2013); Chairman Emeritus and Non-Voting Trustee of The Jackson Laboratory (non-profit) (since August 2011); Director of Special Value Opportunities Fund, LLC (registered investment company) (affiliate of the Manager’s parent company) (since September 2004); Member of Zurich Financial Investment Management Advisory Council (insurance) (since 2004); Treasurer (since 2007) and Trustee of the Institute for Advanced Study (non-profit educational institute) (since May 1992); Chairman (August 2007-July 2011) and Trustee (August 1991-July 2011) of the Board of Trustees of The Jackson Laboratory (non-profit); General Partner of Odyssey Partners, L.P. (hedge fund) (September 1995-December 2007); Special Limited Partner of Odyssey Investment Partners, LLC (private equity investment) (January 1999-September 2004). Oversees 58 portfolios in the OppenheimerFunds complex. Mr. Wruble has served on the Boards of certain Oppenheimer funds since April 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

David K. Downes, Trustee (since 2007) Age: 72		Director of THL Credit Inc. (since June 2009); Independent Chairman GSK Employee Benefit Trust (since April 2006); Trustee of Employee Trusts (since January 2006); Chief Executive Officer and Board Member of Community Capital Management (investment management company) (since January 2004); President of The Community Reinvestment Act Qualified Investment Fund (investment management company) (since 2004); Director of Internet Capital Group (information technology company) (since October 2003); Director of Correctnet (January 2006-2007); Independent Chairman of the Board of Trustees of Quaker Investment Trust (registered investment company) (2004-2007); Chief Operating Officer and Chief Financial Officer of Lincoln National Investment Companies, Inc. (subsidiary of Lincoln National Corporation, a publicly traded company) and Delaware Investments U.S., Inc. (investment management subsidiary of Lincoln National Corporation) (1993-2003); President, Chief Executive Officer and Trustee of Delaware Investment Family of Funds (1993-2003); President and Board Member of Lincoln National Convertible Securities Funds, Inc. and the Lincoln National Income Funds, TDC (1993-2003); Chairman and Chief Executive Officer of Retirement Financial Services, Inc. (registered transfer agent and investment adviser and subsidiary of Delaware Investments U.S., Inc.) (1993-2003); President and Chief Executive Officer of Delaware Service Company, Inc. (1995-2003); Chief Administrative Officer, Chief Financial Officer, Vice Chairman and Director of Equitable Capital Management Corporation (investment subsidiary of Equitable Life Assurance Society) (1985-1992); Corporate Controller of Merrill Lynch Company (financial services holding company) (1977-1985); held the following positions at the Colonial Penn Group, Inc. (insurance company): Corporate Budget Director (1974-1977), Assistant Treasurer (1972-1974) and Director of Corporate Taxes (1969-1972); held the following positions at Price Waterhouse Company (financial services firm): Tax Manager (1967-1969), Tax Senior (1965-1967) and Staff Accountant (1963-1965); United States Marine Corps (1957-1959). Oversees 58 portfolios in the OppenheimerFunds complex. Mr. Downes has served on the Boards of certain Oppenheimer funds since December 2005, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.


82				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Matthew P. Fink, Trustee (since 2005) Age: 71		Trustee of the Committee for Economic Development (policy research foundation) (2005-2011); Director of ICI Education Foundation (education foundation) (October 1991-August 2006); President of the Investment Company Institute (trade association) (October 1991-June 2004); Director of ICI Mutual Insurance Company (insurance company) (October 1991-June 2004); Author of The Rise of Mutual Funds: An Insider’s View published by Oxford University Press (second edition 2010). Oversees 58 portfolios in the OppenheimerFunds complex. Mr. Fink has served on the Boards of certain Oppenheimer funds since January 2005, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Phillip A. Griffiths, Trustee (since 1999) Age: 73		Fellow of the Carnegie Corporation (since 2007); Member of the National Academy of Sciences (since 1979); Council on Foreign Relations (since 2002); Foreign Associate of Third World Academy of Sciences (since 2002); Chair of Science Initiative Group (since 1999); Member of the American Philosophical Society (since 1996); Trustee of Woodward Academy (since 1983); Director of GSI Lumonics Inc. (precision technology products company) (2001-2010); Senior Advisor of The Andrew W. Mellon Foundation (2001-2010); Distinguished Presidential Fellow for International Affairs of the National Academy of Science (2002-2010); Director of the Institute for Advanced Study (1991-2004); Director of Bankers Trust New York Corporation (1994-1999); Provost at Duke University (1983-1991). Oversees 58 portfolios in the OppenheimerFunds complex. Mr. Griffiths has served on the Boards of certain Oppenheimer funds since June 1999, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Mary F. Miller, Trustee (since 2004) Age: 69		Trustee of International House (not-for-profit) (since June 2007); Trustee of the American Symphony Orchestra (not-for-profit) (October 1998-November 2011); and Senior Vice President and General Auditor of American Express Company (financial services company) (July 1998-February 2003). Oversees 58 portfolios in the OppenheimerFunds complex. Ms. Miller has served on the Boards of certain Oppenheimer funds since August 2004, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Joel W. Motley, Trustee (since 2002) Age: 60		Director of Southern Africa Legal Services Foundation (since March 2012); Board Member of Pulitzer Center for Crisis Reporting (non-profit journalism) (since December 2010); Managing Director of Public Capital Advisors, LLC (privately-held financial advisor) (since January 2006); Managing Director of Carmona Motley, Inc. (privately-held financial advisor) (since January 2002); Director of Columbia Equity Financial Corp. (privately-held financial advisor) (2002-2007); Managing Director of Carmona Motley Hoffman Inc. (privately-held financial advisor) (January 1998-December 2001); Member of the Finance and Budget Committee of the Council on Foreign Relations, Chairman of the Investment Committee of the Episcopal Church of America, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee and Board of Historic Hudson Valley. Oversees 58 portfolios in the OppenheimerFunds complex. Mr. Motley has served on the Boards of certain Oppenheimer funds since October 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.


83				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

TRUSTEES AND OFFICERS Unaudited / Continued


Mary Ann Tynan, Trustee (since 2008) Age: 66		Director and Secretary of the Appalachian Mountain Club (non-profit outdoor organization) (since January 2012); Director of Opera House Arts (non-profit arts organization) (since October 2011); Independent Director of the ICI Board of Governors (since October 2011); Vice Chair of Board of Trustees of Brigham and Women’s/Faulkner Hospitals (non-profit hospital) (since 2000); Chair of Board of Directors of Faulkner Hospital (non-profit hospital) (since 1990); Member of Audit and Compliance Committee of Partners Health Care System (non-profit) (since 2004); Board of Trustees of Middlesex School (educational institution) (since 1994); Board of Directors of Idealswork, Inc. (financial services provider) (since 2003); Partner, Senior Vice President and Director of Regulatory Affairs of Wellington Management Company, LLP (global investment manager) (1976-2002); Vice President and Corporate Secretary, John Hancock Advisers, Inc. (mutual fund investment adviser) (1970-1976). Oversees 58 portfolios in the OppenheimerFunds complex. Ms. Tynan has served on the Boards of certain Oppenheimer funds since October 2008, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Joseph M. Wikler, Trustee (since 2005) Age: 71		Director of C-TASC (bio-statistics services) (2007-2012); formerly, Director of the following medical device companies: Medintec (1992-2011) and Cathco (1996-2011); Member of the Investment Committee of the Associated Jewish Charities of Baltimore (since 1994); Director of Lakes Environmental Association (environmental protection organization) (1996-2008); Director of Fortis/Hartford mutual funds (1994-December 2001). Oversees 58 portfolios in the OppenheimerFunds complex. Mr. Wikler has served on the Boards of certain Oppenheimer funds since August 2005, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Peter I. Wold, Trustee (since 2005) Age: 64		Director of Arch Coal, Inc. (since 2010); Director and Chairman of Wyoming Enhanced Oil Recovery Institute Commission (enhanced oil recovery study) (since 2004); President of Wold Oil Properties, Inc. (oil and gas exploration and production company) (since 1994); Vice President of American Talc Company, Inc. (talc mining and milling) (since 1999); Managing Member of Hole-in-the-Wall Ranch (cattle ranching) (since 1979); Director and Chairman of the Denver Branch of the Federal Reserve Bank of Kansas City (1993-1999); and Director of PacifiCorp. (electric utility) (1995-1999). Oversees 58 portfolios in the OppenheimerFunds complex. Mr. Wold has served on the Boards of certain Oppenheimer funds since August 2005, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Messrs. Glavin, Gabinet and Ms. Nasta, Two World Financial Center, 225 Liberty Street, New York, New York 10281-1008, for Messrs. Vandehey and Wixted, 6803 S. Tucson Way, Centennial, Colorado 80112-3924, for Messrs. Loughran, Cottier, Willis, DeMitry, Camarella, Pulire and Stein, 350 Linden Oaks, Rochester, New York 14625. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.

Daniel G. Loughran, Vice President (since 2005) Age: 48		Senior Vice President of the Manager (since July 2007); Vice President of the Manager (April 2001-June 2007) and a Portfolio Manager with the Manager (1999-2001). Team leader, a Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds.


84				OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Scott S. Cottier, Vice President (since 2005) Age: 40		Vice President of the Manager (since September 2002). Portfolio Manager and trader at Victory Capital Management (1999-2002). Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds.

Troy E. Willis, Vice President (since 2005) Age: 39		Vice President of the Manager (since July 2009); Assistant Vice President of the Manager (July 2005-June 2009). Portfolio Manager of the Manager (2003- 2005). Corporate Attorney for Southern Resource Group (1999-2003). Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds.

Mark R. DeMitry, Vice President (since 2009) Age: 36		Vice President of the Manager (since July 2009); Associate Portfolio Manager of the Fund (September 2006- June 2009). Research Analyst of the Manager (June 2003-September 2006) and a Credit Analyst of the Manager (July 2001-May 2003). Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds.

Michael L. Camarella, Vice President (since 2009) Age: 36		Vice President of the Manager (since January 2011); Assistant Vice President of the Manager (July 2009-December 2010); Associate Portfolio Manager of the Manager (January 2008-November 2010). Research Analyst of the Manager (April 2006-December 2007) and a Credit Analyst of the Manager (June 2003-March 2006). Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds.

Charles S. Pulire, Vice President (since 2011) Age: 35		Assistant Vice President of the Manager (since December 2010); Research Analyst of the Manager (February 2008-November 2010); Credit Analyst of the Manager (May 2006-January 2008). Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds.

Richard A. Stein, Vice President (since 2007) Age: 54		Director of the Rochester Credit Analysis team (since March 2004); Senior Vice President of the Manager (since June 2011) and a Vice President of the Manager (1997-May 2011); headed Rochester’s Credit Analysis team (since May 1993).

William F. Glavin, Jr., President and Principal Executive Officer (since 2009) Age: 53		Chairman of the Manager (since December 2009); Chief Executive Officer and Director of the Manager (since January 2009); President of the Manager (since May 2009); Director of Oppenheimer Acquisition Corp. (“OAC”) (the Manager’s parent holding company) (since June 2009); Executive Vice President (March 2006-February 2009) and Chief Operating Officer (July 2007-February 2009) of Massachusetts Mutual Life Insurance Company (OAC’s parent company); Director (May 2004-March 2006) and Chief Operating Officer and Chief Compliance Officer (May 2004-January 2005), President (January 2005-March 2006) and Chief Executive Officer (June 2005-March 2006) of Babson Capital Management LLC; Director (March 2005-March 2006), President (May 2003-March 2006) and Chief Compliance Officer (July 2005-March 2006) of Babson Capital Securities, Inc. (a broker-dealer); President (May 2003-March 2006) of Babson Investment Company, Inc.; Director (May 2004-August 2006) of Babson Capital Europe Limited; Director (May 2004-October 2006) of Babson Capital Guernsey Limited; Director (May 2004-March 2006) of Babson Capital Management LLC; Non-Executive Director (March 2005-March 2007) of Baring Asset Management Limited; Director (February 2005-June 2006) Baring Pension Trustees Limited; Director and Treasurer (December 2003-November 2006) of Charter Oak Capital Management, Inc.; Director (May 2006-September 2006) of C.M. Benefit Insurance Company; Director (May 2008-June 2009) and Executive Vice President (June 2007-July 2009) of C.M. Life Insurance Company; President (March 2006-May 2007) of MassMutual Assignment Company; Director (January 2005-December 2006), Deputy


85				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

TRUSTEES AND OFFICERS Unaudited / Continued


William F. Glavin, Jr., Continued		Chairman (March 2005-December 2006) and President (February 2005-March 2005) of MassMutual Holdings (Bermuda) Limited; Director (May 2008-June 2009) and Executive Vice President (June 2007-July 2009) of MML Bay State Life Insurance Company; Chief Executive Officer and President (April 2007-January 2009) of MML Distributors, LLC; and Chairman (March 2006-December 2008) and Chief Executive Officer (May 2007-December 2008) of MML Investors Services, Inc. Oversees 63 portfolios as a Trustee/Director and 95 portfolios as an officer in the OppenheimerFunds complex.

Arthur S. Gabinet, Secretary and Chief Legal Officer (since 2011) Age: 54		Executive Vice President (since May 2010) and General Counsel (since January 2011) of the Manager; General Counsel of the Distributor (since January 2011); General Counsel of Centennial Asset Management Corporation (since January 2011); Executive Vice President and General Counsel of HarbourView Asset Management Corporation (since January 2011); Assistant Secretary (since January 2011) and Director (since January 2011) of OppenheimerFunds International Ltd. and OppenheimerFunds plc; Vice President and Director of Oppenheimer Partnership Holdings, Inc. (since January 2011); Director of Oppenheimer Real Asset Management, Inc. (since January 2011); Executive Vice President and General Counsel of Shareholder Financial Services, Inc. and Shareholder Services, Inc. (since January 2011); Executive Vice President and General Counsel of OFI Private Investments, Inc. (since January 2011); Vice President of OppenheimerFunds Legacy Program (January 2011-January 2012); Executive Vice President and General Counsel of OFI Institutional Asset Management, Inc. (since January 2011); General Counsel, Asset Management of the Manager (May 2010-December 2010); Principal, The Vanguard Group (November 2005-April 2010); District Administrator, U.S. Securities and Exchange Commission (January 2003-October 2005). An officer of 95 portfolios in the OppenheimerFunds complex.

Christina M. Nasta, Vice President and Chief Business Officer (since 2011) Age: 39		Senior Vice President of the Manager (since July 2010); Vice President of the Manager (since January 2003); Vice President of OppenheimerFunds Distributor, Inc. (since January 2003). An officer of 95 portfolios in the OppenheimerFunds complex.

Mark S. Vandehey, Vice President and Chief Compliance Officer (since 2004) Age: 61		Senior Vice President and Chief Compliance Officer of the Manager (since March 2004); Chief Compliance Officer of OppenheimerFunds Distributor, Inc., Centennial Asset Management and Shareholder Services, Inc. (since March 2004); Vice President of OppenheimerFunds Distributor, Inc., Centennial Asset Management Corporation and Shareholder Services, Inc. (since June 1983). An officer of 95 portfolios in the OppenheimerFunds complex.

Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer (since 1999) Age: 52		Senior Vice President of the Manager (since March 1999); Treasurer of the Manager and the following: HarbourView Asset Management Corporation, Shareholder Financial Services, Inc., Shareholder Services, Inc., Oppenheimer Real Asset Management, Inc. and Oppenheimer Partnership Holdings, Inc. (March 1999-June 2008), OFI Private Investments, Inc. (March 2000-June 2008), OppenheimerFunds International Ltd. and OppenheimerFunds plc (since May 2000), OFI Institutional Asset Management, Inc. (since November 2000), and OppenheimerFunds Legacy Program (charitable trust program established by the Manager) (June 2003-January 2012); Treasurer and Chief Financial Officer of OFI Trust Company (trust company subsidiary of the Manager) (since May 2000); Assistant Treasurer of OAC (March 1999-June 2008). An officer of 95 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge upon request, by calling 1.800.CALL OPP (225.5677).


86				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

OPPENHEIMER CALIFORNIA MUNICIPAL FUND


Manager		OppenheimerFunds, Inc.
Distributor		OppenheimerFunds Distributor, Inc.
Transfer and Shareholder Servicing Agent		OppenheimerFunds Services
Independent Registered Public Accounting Firm		KPMGLLP
Legal Counsel		Kramer Levin Naftalis & Frankel LLP


87				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

PRIVACY POLICY NOTICE

As an Oppenheimer fund shareholder, you are entitled to know how we protect your personal information and how we limit its disclosure.

Information Sources

We obtain nonpublic personal information about our shareholders from the following sources:

Applications or other forms

When you create a user ID and password for online account access

When you enroll in eDocs Direct, our electronic document delivery service

Your transactions with us, our affiliates or others

A software program on our website, often referred to as a “cookie,” which indicates which parts of our site you’ve visited

When you set up challenge questions to reset your password online

If you visit oppenheimerfunds.com and do not log on to the secure account information areas, we do not obtain any personal information about you. When you do log on to a secure area, we do obtain your user ID and password to identify you. We also use this information to provide you with products and services you have requested, to inform you about products and services that you may be interested in and assist you in other ways.

We do not collect personal information through our website unless you willingly provide it to us, either directly by email or in those areas of the website that request information. In order to update your personal information (including your mailing address, email address and phone number) you must first log on and visit your user profile.

If you have set your browser to warn you before accepting cookies, you will receive the warning message with each cookie. You can refuse cookies by turning them off in your browser. However, doing so may limit your access to certain sections of our website.

We use cookies to help us improve and manage our website. For example, cookies help us recognize new versus repeat visitors to the site, track the pages visited, and enable some special features on the website. This data helps us provide a better service for our website visitors.

Protection of Information

We do not disclose any non-public personal information (such as names on a customer list) about current or former customers to anyone, except as permitted by law.

Disclosure of Information

We send your financial advisor (as designated by you) copies of confirmations, account statements and other documents reporting activity in your fund accounts. We may also use details about you and your investments to help us, our financial service affiliates, or firms that jointly market their financial products and services with ours, to better serve your investment needs or suggest financial services or educational material that may be of interest to you. If this requires us to provide you with an opportunity to “opt in” or “opt out” of such information sharing with a firm not affiliated with us, you will receive notification on how to do so, before any such sharing takes place.

Right of Refusal

We will not disclose your personal information to unaffiliated third parties (except as permitted by law), unless we first offer you a reasonable opportunity to refuse or “opt out” of such disclosure.

Internet Security and Encryption

In general, the email services provided by our website are encrypted and provide a secure and private means of communication with us. To protect your own privacy, confidential and/or personal information should only be communicated via email when you are advised that you are using a secure website.


88				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

PRIVACY POLICY NOTICE

As a security measure, we do not include personal or account information in non-secure emails, and we advise you not to send such information to us in non-secure emails. Instead, you may take advantage of the secure features of our website to encrypt your email correspondence. To do this, you will need to use a browser that supports Secure Sockets Layer (SSL) protocol.

We do not guarantee or warrant that any part of our website, including files available for download, are free of viruses or other harmful code. It is your responsibility to take appropriate precautions, such as use of an anti-virus software package, to protect your computer hardware and software.

All transactions, including redemptions, exchanges and purchases, are secured by SSL and 128-bit encryption. SSL is used to establish a secure connection between your PC and OppenheimerFunds’ server. It transmits information in an encrypted and scrambled format.

Encryption is achieved through an electronic scrambling technology that uses a “key” to code and then decode the data. Encryption acts like the cable converter box you may have on your television set. It scrambles data with a secret code so that no one can make sense of it while it is being transmitted. When the data reaches its destination, the same software unscrambles the data.

You can exit the secure area by either closing your browser, or for added security, you can use the Log Out button before you close your browser.

Other Security Measures

We maintain physical, electronic and procedural safeguards to protect your personal account information. Our employees and agents have access to that information only so that they may offer you products or provide services, for example, when responding to your account questions.

How You Can Help

You can also do your part to keep your account information private and to prevent unauthorized transactions. If you obtain a user ID and password for your account, do not allow it to be used by anyone else. Also, take special precautions when accessing your account on a computer used by others.

Who We Are

This joint notice describes the privacy policies of the Oppenheimer funds, OppenheimerFunds Distributor, Inc., the trustee of OppenheimerFunds Individual Retirement Accounts (IRAs) and the custodian of the OppenheimerFunds 403(b)(7) tax sheltered custodial accounts. It applies to all Oppenheimer fund accounts you presently have, or may open in the future, using your Social Security number—whether or not you remain a shareholder of our funds. This notice was last updated January 16, 2004. In the event it is updated or changed, we will post an updated notice on our website at oppenheimerfunds.com. If you have any questions about these privacy policies, write to us at P.O. Box 5270, Denver, CO 80217-5270, email us by clicking on the Contact Us section of our website at oppenheimerfunds.com or call us at 1.800.CALL OPP (225.5677).


89				OPPENHEIMER CALIFORNIA MUNICIPAL FUND

Item 2. Code of Ethics.

The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions.

Item 3. Audit Committee Financial Expert.

The Board of Trustees of the registrant has determined that David Downes, the Board’s Audit Committee Chairman, is an audit committee financial expert and that Mr. Downes is “independent” for purposes of this Item 3.

Item 4. Principal Accountant Fees and Services.

(a)	Audit Fees

The principal accountant for the audit of the registrant’s annual financial statements billed $44,700 in fiscal 2012 and $43,800 in fiscal 2011.

(b)	Audit-Related Fees

The principal accountant for the audit of the registrant’s annual financial statements billed $2,500 in fiscal 2012 and $2,619 in fiscal 2011.

The principal accountant for the audit of the registrant’s annual financial statements billed $324,306 in fiscal 2012 and $168,500 in fiscal 2011 to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

Such services include: Internal control reviews, compliance procedures, and GIPS attestation procedures

(c)

Tax Fees

The principal accountant for the audit of the registrant’s annual financial statements billed $3,550 in fiscal 2012 and $950 in fiscal 2011.

The principal accountant for the audit of the registrant’s annual financial statements billed $317,764 in fiscal 2012 and no such fees in fiscal 2011 to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

Such services include: tax compliance, tax planning and tax advice. Tax compliance generally involves preparation of original and amended tax returns, claims for a refund and tax payment-planning services. Tax planning and tax advice includes assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities.

(d)	All Other Fees

The principal accountant for the audit of the registrant’s annual financial statements billed no such fees in fiscal 2012 and no such fees in fiscal 2011.

The principal accountant for the audit of the registrant’s annual financial statements billed no such fees in fiscal 2012 and no such fees in fiscal 2011 to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

Such fees would include the cost to the principal accountant of attending audit committee meetings and consultations regarding the registrant’s retirement plan with respect to its Trustees.

(e)	(1) During its regularly scheduled periodic meetings, the registrant’s audit committee will pre-approve all audit, audit-related, tax and other services to be provided by the principal accountants of the registrant.

The audit committee has delegated pre-approval authority to its Chairman for any subsequent new engagements that arise between regularly scheduled meeting dates provided that any fees such pre-approved are presented to the audit committee at its next regularly scheduled meeting.

Under applicable laws, pre-approval of non-audit services maybe waived provided that: 1) the aggregate amount of all such services provided constitutes no more than five percent of the total amount of fees paid by the registrant to it principal accountant during the fiscal year in which services are provided 2) such services were not recognized by the registrant at the time of engagement as non-audit services and 3) such services are promptly brought to the attention of the audit committee of the registrant and approved prior to the completion of the audit.

(2) 100%

(f)	Not applicable as less than 50%.

(g)

The principal accountant for the audit of the registrant’s annual financial statements billed $648,120 in fiscal 2012 and $172,069 in fiscal 2011 to the registrant and the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant related to non-audit fees. Those billings did not include any prohibited non-audit services as defined by the Securities Exchange Act of 1934.

(h)

The registrant’s audit committee of the board of Trustees has considered whether the provision of non-audit services that were rendered 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 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. No such services were rendered.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Schedule of Investments.

a) Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.

b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

The Fund’s Governance Committee Provisions with Respect to Nominations of Directors/Trustees to the Respective Boards

The Fund’s Governance Committee (the “Committee”) will evaluate potential Board candidates to assess their qualifications. The Committee shall have the authority, upon approval of the Board, to retain an executive search firm to assist in this effort. The Committee may consider recommendations by business and personal contacts of current

Board members and by executive search firms which the Committee may engage from time to time and may also consider shareholder recommendations. The Committee may consider the advice and recommendation of the Funds’ investment manager and its affiliates in making the selection.

The Committee shall screen candidates for Board membership. The Committee has not established specific qualifications that it believes must be met by a trustee nominee. In evaluating trustee nominees, the Committee considers, among other things, an individual’s background, skills, and experience; whether the individual is an “interested person” as defined in the Investment Company Act of 1940; and whether the individual would be deemed an “audit committee financial expert” within the meaning of applicable SEC rules. The Committee also considers whether the individual’s background, skills, and experience will complement the background, skills, and experience of other nominees and will contribute to the Board. There are no differences in the manner in which the Committee evaluates nominees for trustees based on whether the nominee is recommended by a shareholder.

The Committee may consider nominations from shareholders for the Board at such times as the Committee meets to consider new nominees for the Board. The Committee shall have the sole discretion to determine the candidates to present to the Board and, in such cases where required, to shareholders. Recommendations for trustee nominees should, at a minimum, be accompanied by the following:

•

the name, address, and business, educational, and/or other pertinent background of the person being recommended;

•

a statement concerning whether the person is an “interested person” as defined in the Investment Company Act of 1940;

•

any other information that the Funds would be required to include in a proxy statement concerning the person if he or she was nominated; and

•

the name and address of the person submitting the recommendation and, if that person is a shareholder, the period for which that person held Fund shares.

The recommendation also can include any additional information which the person submitting it believes would assist the Committee in evaluating the recommendation.

Shareholders should note that a person who owns securities issued by Massachusetts Mutual Life Insurance Company (the parent company of the Funds’ investment adviser) would be deemed an “interested person” under the Investment Company Act of 1940. In addition, certain other relationships with Massachusetts Mutual Life Insurance Company or its subsidiaries, with registered broker-dealers, or with the Funds’ outside legal counsel may cause a person to be deemed an “interested person.”

Before the Committee decides to nominate an individual as a trustee, Committee members and other directors customarily interview the individual in person. In addition, the individual customarily is asked to complete a detailed questionnaire which is designed to elicit information which must be disclosed under SEC and stock exchange rules and to determine whether the individual is subject to any statutory disqualification from serving as a trustee of a registered investment company.

Item 11. Controls and Procedures.

Based on their evaluation of the registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c)) as of 7/31/2012, the registrant’s principal executive officer and principal financial officer found the registrant’s disclosure controls and procedures to provide reasonable assurances that information required to be disclosed by the registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant’s management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission.

There have been no changes in the registrant’s internal controls over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)	(1) Exhibit attached hereto.

(2) Exhibits attached hereto.

(3) Not applicable.

(b)	Exhibit attached hereto.

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.

Oppenheimer California Municipal Fund


By:		/s/ William F. Glavin, Jr.
		William F. Glavin, Jr.
		Principal Executive Officer
Date:		9/11/2012

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/ William F. Glavin, Jr.
		William F. Glavin, Jr.
		Principal Executive Officer
Date:		9/11/2012

By:		/s/ Brian W. Wixted
		Brian W. Wixted
		Principal Financial Officer
Date:		9/11/2012

Oppenheimer Rochester California Municipal Fund Inactive N-CSRCertified annual shareholder report (management investment company)