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)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
498 Seventh Avenue, New York, New York 10018
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(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: August 1, 2002 - July 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
FUND PERFORMANCE DISCUSSION
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How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc., of
the Fund's performance during its fiscal year ended July 31, 2003, followed by a
graphical comparison of the Fund's performance to an appropriate broad-based
market index.
Management's Discussion of Fund Performance. Over the past 12 months, we
successfully repositioned Oppenheimer California Municipal Fund to provide
investors higher yields. Our research-intensive investment process was used to
shift the Fund's focus from high-grade general obligation bonds to lesser known
local issues that offer yield premiums, without taking on significant additional
credit risks. In implementing this strategy, we reduced AAA-rated bonds from 45%
to 10% of net assets, and increased the investment in BBB-rated bonds (i.e.,
lower-rated, but still investment-grade bonds) to nearly 30% of total
investments at market value.
Additionally, we increased the level of non-investment-grade bonds from 19%
to 25% of net assets, and reduced highly volatile zero-coupon holdings from 11%
to approximately 2% of net assets. Our bottom-up investment process focuses on
bonds that are undervalued, out of favor, or misunderstood in the marketplace.
For instance, by period-end, we had invested many of the Fund's assets in Master
Settlement Agreement (MSA) bonds (26.0% of total investments at market value),
land-development bonds (15.5%), and higher-education bonds (5.1%).
The volatility and underperformance of the Fund is largely attributable to
our tobacco bond holdings. In April 2003, an Illinois state court decision
required Phillip Morris to pay a $10 billion judgment levied against them or
post a $12 billion bond to appeal the decision. The size of the bonding
requirement necessary to appeal the decision raised the specter of potential
bankruptcy for Phillip Morris and a possible default on Phillip Morris's share
of the tobacco settlement payments. Although this litigation risk continues, all
MSA payments were made. While the MSA bond positions have rallied off the lows,
MSA bond prices continue to be held down by the litigation risk that still
surrounds this case.
After intensive research, we continue to have strongly positive convictions
about MSA bonds, believing that the litigation risk is less than many investors
may fear. It should also be noted that MSA bonds continue to carry
investment-grade ratings by all three of the rating agencies and that there have
been several favorable appellate court decisions, which could set the precedent
for future lawsuits.
We continue to find excellent value in MSA bonds, despite their recent price
volatility, which was driven in part by fear of an oversupply. That fear is
dissipating in the face of two recent changes. First, several states that had
planned to issue new MSA bonds cancelled their sales. Second, other states have
issued new bonds with an added security
5 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FUND PERFORMANCE DISCUSSION
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(e.g., a guarantee of appropriation by the state), thereby creating what is
considered a separate tier or credit level of tobacco bonds from a
diversification standpoint. We believe that over time, tobacco-settlement bonds
will become relatively scarce, but in the meantime, they offer significantly
higher yields than similarly rated bonds.
The Fund's second largest sector focuses are the special tax and special
assessment sectors. These sectors are tied to real estate development, and have
benefited from the robust real estate market in California. When investing in
land development deals, we focus on areas that allow us to capitalize on
California's voracious appetite for new housing. We have paid special attention
to the corridor between Orange County and San Diego, but have also looked for
developments in other areas such as Los Angeles and Sacramento. Thorough
research has allowed us to capture some remarkable yields in this sector.
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, 2003. In the case of Class A and Class B shares,
performance is measured over a ten-year period. In the case of Class C shares,
performance is measured from inception of the Class on November 1, 1995. 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.
The Fund's performance is compared to the performance of the Lehman Brothers
Municipal Bond Index, an unmanaged index of a broad range of investment-grade
municipal bonds that is widely regarded as a measure of the performance of the
general municipal bond market. Index performance reflects the reinvestment of
dividends but does not consider the effect of capital gains or transaction
costs, and none of the data in the graphs that follow shows the effect of taxes.
The Fund's performance reflects the effects of Fund business and operating
expenses. While index comparisons may be useful to provide a benchmark for the
Fund's performance, it must be noted that the Fund's investments are not limited
to the securities in the index.
6 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer California Municipal Fund (Class A)
Lehman Brothers Municipal Bond Index
[LINE CHART]
Value of Investment Lehman Brothers
Date In Fund Municipal Bond Index
- ---- ------- --------------------
12/31/1993 9,525 10,000
03/31/1994 8,954 9,451
06/30/1994 8,949 9,555
09/30/1994 8,979 9,621
12/31/1994 8,717 9,483
03/31/1995 9,470 10,153
06/30/1995 9,714 10,398
09/30/1995 9,935 10,697
12/31/1995 10,439 11,138
03/31/1996 10,273 11,004
06/30/1996 10,336 11,088
07/31/1996 1 10,474 11,189
10/31/1996 10,730 11,471
01/31/1997 10,918 11,654
04/30/1997 10,958 11,701
07/31/1997 11,637 12,336
10/31/1997 11,729 12,445
01/31/1998 12,120 12,832
04/30/1998 11,999 12,789
07/31/1998 12,296 13,075
10/31/1998 12,614 13,443
01/31/1999 12,845 13,685
04/30/1999 12,828 13,678
07/31/1999 12,491 13,452
10/31/1999 11,935 13,205
01/31/2000 11,733 13,188
04/30/2000 12,137 13,552
07/31/2000 12,599 14,031
10/31/2000 12,929 14,328
01/31/2001 13,411 14,940
04/30/2001 13,311 14,958
07/31/2001 13,755 15,445
10/31/2001 14,191 15,834
01/31/2002 14,047 15,821
04/30/2002 14,153 16,005
07/31/2002 14,606 16,482
10/31/2002 14,693 16,763
01/31/2003 14,571 17,002
04/30/2003 14,527 17,364
07/31/2003 14,523 17,076
Average Annual Total Returns of Class A Shares of the Fund at 7/31/03 2
1-Year -5.29% 5-Year 2.38% 10-Year 4.32%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer California Municipal Fund (Class B)
Lehman Brothers Municipal Bond Index
[LINE CHART]
Value of Investment Lehman Brothers
Date In Fund Municipal Bond Index
- ---- ------- --------------------
12/31/1993 10,000 10,000
03/31/1994 9,372 9,451
06/30/1994 9,358 9,555
09/30/1994 9,371 9,621
12/31/1994 9,061 9,483
03/31/1995 9,845 10,153
06/30/1995 10,070 10,398
09/30/1995 10,279 10,697
12/31/1995 10,779 11,138
03/31/1996 10,588 11,004
06/30/1996 10,643 11,088
07/31/1996 1 10,767 11,189
10/31/1996 11,009 11,471
01/31/1997 11,181 11,654
04/30/1997 11,201 11,701
07/31/1997 11,872 12,336
10/31/1997 11,954 12,445
01/31/1998 12,329 12,832
04/30/1998 12,173 12,789
07/31/1998 12,450 13,075
10/31/1998 12,759 13,443
01/31/1999 12,957 13,685
04/30/1999 12,927 13,678
07/31/1999 12,552 13,452
10/31/1999 11,971 13,205
01/31/2000 11,771 13,188
04/30/2000 12,177 13,552
07/31/2000 12,641 14,031
10/31/2000 12,971 14,328
01/31/2001 13,455 14,940
04/30/2001 13,355 14,958
07/31/2001 13,800 15,445
10/31/2001 14,238 15,834
01/31/2002 14,093 15,821
04/30/2002 14,199 16,005
07/31/2002 14,655 16,482
10/31/2002 14,742 16,763
01/31/2003 14,619 17,002
04/30/2003 14,575 17,364
07/31/2003 14,571 17,076
Average Annual Total Returns of Class B Shares of the Fund at 7/31/03 2
1-Year -6.12% 5-Year 2.27% 10-Year 4.34%
1. The Fund changed its fiscal year end from 12/31 to 7/31.
2. See Notes on page 9 for further details.
The performance information for the Lehman Brothers Municipal Bond Index in the
graphs begins on 12/31/93 for Class A and Class B, and 10/31/95 for Class C.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
7 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FUND PERFORMANCE DISCUSSION
- --------------------------------------------------------------------------------
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer California Municipal Fund (Class C)
Lehman Brothers Municipal Bond Index
[LINE CHART]
Value of Investment Lehman Brothers
Date In Fund Municipal Bond Index
- ---- ------- --------------------
11/01/1995 10,000 10,000
12/31/1995 10,290 10,264
03/31/1996 10,102 10,140
06/30/1996 10,142 10,218
07/31/1996 1 10,270 10,310
10/31/1996 10,500 10,570
01/31/1997 10,664 10,739
04/30/1997 10,673 10,782
07/31/1997 11,324 11,367
10/31/1997 11,391 11,468
01/31/1998 11,750 11,824
04/30/1998 11,601 11,785
07/31/1998 11,876 12,049
10/31/1998 12,161 12,387
01/31/1999 12,350 12,610
04/30/1999 12,321 12,604
07/31/1999 11,963 12,395
10/31/1999 11,408 12,168
01/31/2000 11,204 12,152
04/30/2000 11,569 12,488
07/31/2000 11,976 12,930
10/31/2000 12,266 13,203
01/31/2001 12,712 13,767
04/30/2001 12,582 13,783
07/31/2001 12,991 14,233
10/31/2001 13,378 14,590
01/31/2002 13,216 14,579
04/30/2002 13,279 14,748
07/31/2002 13,680 15,188
10/31/2002 13,735 15,446
01/31/2003 13,593 15,667
04/30/2003 13,540 16,001
07/31/2003 13,497 15,735
Average Annual Total Returns of Class C Shares of the Fund at 7/31/03 2
1-Year -2.27% 5-Year 2.59% Since Inception 3.95%
1. The Fund changed its fiscal year end from 12/31 to 7/31.
2. See Notes on page 9 for further details.
The performance information for the Lehman Brothers Municipal Bond Index in the
graphs begins on 12/31/93 for Class A and Class B, and 10/31/95 for Class C.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
8 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES
- --------------------------------------------------------------------------------
In reviewing performance and rankings, please remember that past performance
cannot guarantee future results. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Because of ongoing
market volatility, the Fund's performance may be subject to substantial
fluctuations, and current performance may be more or less than the results
shown. For updates on the Fund's performance, visit our website at
www.oppenheimerfunds.com.
Total returns and the ending account values in the graph includes changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not 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. For more complete information
about the Fund, including charges, expenses and risks, please refer to the
prospectus. To obtain a copy, call your financial advisor, call OppenheimerFunds
Distributor, Inc. at 1.800.CALL OPP (1.800.225.5677). Read the prospectus
carefully before you invest or send money.
Class A shares of the Fund were first publicly offered on 11/3/88. The average
annual total returns are shown net of the applicable 4.75% maximum initial sales
charge. The Fund's maximum sales charge for Class A shares was lower prior to
1/31/86, so actual performance may have been higher.
Class B shares of the Fund were first publicly offered on 5/3/93. The average
annual total returns are shown net of 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 "since inception" return for Class B uses
Class A performance for the period after conversion. Class B shares are subject
to an annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 11/1/95. The average
annual total returns are shown net of the applicable 1% contingent deferred
sales charge for the one-year period. Class C shares are subject to an annual
0.75% asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
9 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS July 31, 2003
- --------------------------------------------------------------------------------
Principal Market Value
Amount Coupon Maturity See Note 1
- ------------------------------------------------------------------------------------------------------------------
Municipal Bonds and Notes--106.3%
- ------------------------------------------------------------------------------------------------------------------
California--94.5%
$ 1,000,000 ABAG Finance Authority for NonProfit Corporations
(Schools of Sacred Heart) 6.450% 06/01/2030 $ 1,060,140
- ------------------------------------------------------------------------------------------------------------------
90,000 ABAG Finance Authority for NonProfit
Corporations COP 6.000 08/15/2020 92,983
- ------------------------------------------------------------------------------------------------------------------
450,000 ABAG Finance Authority for NonProfit Corporations
COP (American Baptist Homes of the West) 5.750 10/01/2017 419,877
- ------------------------------------------------------------------------------------------------------------------
4,300,000 ABAG Finance Authority for NonProfit Corporations
COP (Redwood Senior Homes & Services) 6.125 11/15/2032 4,207,894
- ------------------------------------------------------------------------------------------------------------------
25,000 Adelanto Improvement Agency, Series B 5.500 12/01/2023 25,753
- ------------------------------------------------------------------------------------------------------------------
6,360,000 Agua Mansa Industrial Growth Association
Special Tax 6.500 09/01/2033 6,355,357
- ------------------------------------------------------------------------------------------------------------------
95,000 Alhambra (Atherton Baptist Homes) 6.500 07/01/2015 95,289
- ------------------------------------------------------------------------------------------------------------------
235,000 Alhambra Redevel. Agency Tax Allocation 5.850 05/01/2023 240,236
- ------------------------------------------------------------------------------------------------------------------
25,000 Alum Rock Union Elementary School District GO 5.200 09/01/2015 25,308
- ------------------------------------------------------------------------------------------------------------------
4,000,000 Anaheim Public Finance Authority RITES 11.820 f 12/28/2018 5,232,680
- ------------------------------------------------------------------------------------------------------------------
15,000 Anaheim Water 5.750 04/01/2009 15,053
- ------------------------------------------------------------------------------------------------------------------
25,000 Azusa COP 5.750 08/01/2020 25,926
- ------------------------------------------------------------------------------------------------------------------
3,930,000 Azusa Special Tax Community Facilities District
(Mountain Cove) 6.000 09/01/2032 3,884,451
- ------------------------------------------------------------------------------------------------------------------
25,000 Berkeley Joint Powers Financing Authority 5.700 06/01/2015 25,572
- ------------------------------------------------------------------------------------------------------------------
5,400,000 CA CDA (Berkeley Montessori School) 7.250 10/01/2033 5,363,226
- ------------------------------------------------------------------------------------------------------------------
8,000,000 CA CDA (East Valley Tourist) 11.000 10/01/2020 7,936,560
- ------------------------------------------------------------------------------------------------------------------
5,000,000 CA CDA (John F. Kennedy University) 6.750 10/01/2033 4,757,950
- ------------------------------------------------------------------------------------------------------------------
1,650,000 CA CDA (Notre Dame de Namur University) 6.500 10/01/2023 1,612,693
- ------------------------------------------------------------------------------------------------------------------
1,635,000 CA CDA (Notre Dame de Namur University) 6.625 10/01/2033 1,592,196
- ------------------------------------------------------------------------------------------------------------------
270,000 CA CDA COP (Sutter Health) 5.500 08/15/2023 276,067
- ------------------------------------------------------------------------------------------------------------------
1,695,000 CA County Tobacco Securitization Agency (TASC) 5.750 06/01/2027 1,415,867
- ------------------------------------------------------------------------------------------------------------------
7,000,000 CA County Tobacco Securitization Agency (TASC) 5.750 06/01/2029 5,791,520
- ------------------------------------------------------------------------------------------------------------------
6,230,000 CA County Tobacco Securitization Agency (TASC) 5.875 06/01/2027 5,211,956
- ------------------------------------------------------------------------------------------------------------------
9,000,000 CA County Tobacco Securitization Agency (TASC) 5.875 06/01/2035 7,115,220
- ------------------------------------------------------------------------------------------------------------------
10,400,000 CA County Tobacco Securitization Agency (TASC) 6.000 06/01/2035 8,325,200
- ------------------------------------------------------------------------------------------------------------------
17,900,000 CA County Tobacco Securitization Agency (TASC) 6.000 06/01/2042 14,182,886
- ------------------------------------------------------------------------------------------------------------------
10,000,000 CA County Tobacco Securitization Agency (TASC) 6.125 06/01/2038 8,115,600
- ------------------------------------------------------------------------------------------------------------------
100,000 CA Department of Water Resources (Center Valley) 5.250 07/01/2022 100,012
- ------------------------------------------------------------------------------------------------------------------
30,000 CA Department of Water Resources (Center Valley) 5.400 07/01/2012 30,078
- ------------------------------------------------------------------------------------------------------------------
100,000 CA EFA (Carnegie Institution of Washington) 5.600 10/01/2023 102,524
- ------------------------------------------------------------------------------------------------------------------
20,000 CA EFA (College and University Financing) 6.250 06/01/2018 20,417
- ------------------------------------------------------------------------------------------------------------------
1,000,000 CA EFA (Western University Health Sciences) 6.000 10/01/2032 1,015,040
- ------------------------------------------------------------------------------------------------------------------
60,000 CA GO 5.100 03/01/2010 60,041
- ------------------------------------------------------------------------------------------------------------------
100,000 CA GO 5.150 10/01/2019 100,603
- ------------------------------------------------------------------------------------------------------------------
25,000 CA GO 5.250 04/01/2018 24,998
- ------------------------------------------------------------------------------------------------------------------
10,000 CA GO 5.250 04/01/2019 9,962
- ------------------------------------------------------------------------------------------------------------------
140,000 CA GO 5.500 04/01/2019 143,494
- ------------------------------------------------------------------------------------------------------------------
155,000 CA GO 5.500 10/01/2022 154,442
- ------------------------------------------------------------------------------------------------------------------
5,000 CA GO 6.000 05/01/2018 5,215
- ------------------------------------------------------------------------------------------------------------------
2,335,000 CA GO RITES a 15.328 f 10/01/2032 1,887,777
- ------------------------------------------------------------------------------------------------------------------
5,000,000 CA Golden State Tobacco Securitization Corp. 6.250 06/01/2033 4,292,750
10 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
Principal Market Value
Amount Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------
California Continued
$ 47,205,000 CA Golden State Tobacco Securitization
Corp. 6.625% 06/01/2040 $ 40,092,151
- -----------------------------------------------------------------------------------------------------------------
5,835,000 CA Golden State Tobacco Securitization Corp. 7.900 06/01/2042 5,822,105
- -----------------------------------------------------------------------------------------------------------------
10,000 CA Health Facilities Financing Authority
(Sisters of Providence) 6.400 10/01/2005 10,234
- -----------------------------------------------------------------------------------------------------------------
15,000 CA Health Facilities Financing Authority
(Small Facilities Loan), Series A 6.700 03/01/2011 15,175
- -----------------------------------------------------------------------------------------------------------------
600,000 CA Health Facilities Financing Authority
(Small Facilities Loan), Series B 7.400 04/01/2014 652,650
- -----------------------------------------------------------------------------------------------------------------
20,000 CA HFA (Multi-Unit Rental Hsg.) 6.875 02/01/2022 20,119
- -----------------------------------------------------------------------------------------------------------------
2,350,000 CA HFA (Single Family Mtg.), Series A-2 w 6.450 08/01/2025 2,397,611
- -----------------------------------------------------------------------------------------------------------------
30,000 CA HFA, Series A 5.600 08/01/2025 30,148
- -----------------------------------------------------------------------------------------------------------------
10,000 CA HFA, Series B 5.650 08/01/2014 10,218
- -----------------------------------------------------------------------------------------------------------------
50,000 CA HFA, Series D 6.400 08/01/2025 51,115
- -----------------------------------------------------------------------------------------------------------------
1,710,000 CA I&E Devel. Bank
(American Center for Wine, Food & Arts) 5.550 12/01/2012 1,817,371
- -----------------------------------------------------------------------------------------------------------------
25,000 CA Pollution Control Financing Authority
(Pacific Gas & Electric Corp.) 5.850 12/01/2023 25,576
- -----------------------------------------------------------------------------------------------------------------
3,000,000 CA Pollution Control Financing Authority
(Pacific Gas & Electric Corp.) 6.350 06/01/2009 2,955,720
- -----------------------------------------------------------------------------------------------------------------
4,950,000 CA Pollution Control Financing Authority
(Sacramento Biosolids) 5.500 12/01/2024 4,891,441
- -----------------------------------------------------------------------------------------------------------------
95,000 CA Pollution Control Financing Authority
(San Diego Gas & Electric Company) 5.850 06/01/2021 97,175
- -----------------------------------------------------------------------------------------------------------------
20,000 CA Public Works (Department of Corrections) 5.375 06/01/2018 20,448
- -----------------------------------------------------------------------------------------------------------------
105,000 CA Public Works (Department of Corrections) 5.375 12/01/2019 108,120
- -----------------------------------------------------------------------------------------------------------------
10,000 CA Public Works (Department of Corrections) 5.500 12/01/2012 10,308
- -----------------------------------------------------------------------------------------------------------------
5,000 CA Public Works (State Universities) 5.500 12/01/2018 5,026
- -----------------------------------------------------------------------------------------------------------------
50,000 CA Public Works (State Universities) 5.500 06/01/2019 51,128
- -----------------------------------------------------------------------------------------------------------------
50,000 CA Public Works (State Universities) 5.500 06/01/2021 51,128
- -----------------------------------------------------------------------------------------------------------------
190,000 CA Public Works (State Universities) 5.500 06/01/2021 194,286
- -----------------------------------------------------------------------------------------------------------------
130,000 CA Rural Home Mtg. Finance Authority
(Single Family Mtg.), Series B 7.750 09/01/2026 130,417
- -----------------------------------------------------------------------------------------------------------------
935,000 CA Rural Home Mtg. Finance Authority
(Single Family Mtg.), Series D 6.700 05/01/2029 988,809
- -----------------------------------------------------------------------------------------------------------------
3,000,000 CA Statewide CDA (Aspire Public Schools) 7.250 08/01/2032 2,980,230
- -----------------------------------------------------------------------------------------------------------------
870,000 CA Statewide CDA (Citrus Gardens Apartments) 6.500 07/01/2032 843,508
- -----------------------------------------------------------------------------------------------------------------
1,445,000 CA Statewide CDA (Citrus Gardens Apartments) 9.000 07/01/2032 1,407,184
- -----------------------------------------------------------------------------------------------------------------
18,500,000 CA Statewide CDA (East Campus Apartments) 5.625 08/01/2034 18,529,785
- -----------------------------------------------------------------------------------------------------------------
1,000,000 CA Statewide CDA (Quail Ridge Apartments) 5.375 07/01/2032 967,210
- -----------------------------------------------------------------------------------------------------------------
1,505,000 CA Statewide CDA (Quail Ridge Apartments) 6.500 07/01/2032 1,459,173
- -----------------------------------------------------------------------------------------------------------------
2,140,000 CA Statewide CDA (Quail Ridge Apartments) 9.000 07/01/2032 2,083,996
- -----------------------------------------------------------------------------------------------------------------
4,000,000 CA Statewide CDA (Turning Point) 6.500 11/01/2031 4,080,680
- -----------------------------------------------------------------------------------------------------------------
7,800,000 CA Statewide CDA COP
(Cedars-Sinai Medical Center) INFLOS a 9.502 f 11/01/2015 7,968,012
- -----------------------------------------------------------------------------------------------------------------
7,000,000 CA Statewide CDA COP
(Pride Industries/Pride Industries One
Obligated Group) 7.250 11/01/2029 7,224,280
- -----------------------------------------------------------------------------------------------------------------
2,000,000 CA Statewide CDA COP (Windward School) 6.900 09/01/2023 2,082,880
11 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
Principal Market Value
Amount Coupon Maturity See Note 1
- ----------------------------------------------------------------------------------------------------------------
California Continued
$ 5,000,000 CA Statewide Finance Authority
Tobacco Settlement (TASC) 6.000% 05/01/2037 $ 3,989,000
- ----------------------------------------------------------------------------------------------------------------
11,720,000 CA Statewide Finance Authority
Tobacco Settlement (TASC) 6.000 05/01/2043 9,276,849
- ----------------------------------------------------------------------------------------------------------------
30,000,000 CA Statewide Finance Authority
Tobacco Settlement (TASC) 6.000 05/01/2043 23,746,200
- ----------------------------------------------------------------------------------------------------------------
2,355,000 Campbell Redevel. Agency Tax Allocation 6.600 10/01/2032 2,535,746
- ----------------------------------------------------------------------------------------------------------------
2,500,000 Capistrano Unified School District Community
Facilities District 5.700 09/01/2020 2,481,275
- ----------------------------------------------------------------------------------------------------------------
25,000 Chino Hills Special Tax 6.200 09/01/2007 25,065
- ----------------------------------------------------------------------------------------------------------------
1,580,000 Chula Vista Community Facilities District Special Tax
(McMillin-Otay Ranch) 5.750 09/01/2027 1,511,539
- ----------------------------------------------------------------------------------------------------------------
1,600,000 Chula Vista Community Facilities District Special Tax
(McMillin-Otay Ranch) 5.750 09/01/2033 1,519,584
- ----------------------------------------------------------------------------------------------------------------
20,000 Coachella COP 6.100 03/01/2022 20,269
- ----------------------------------------------------------------------------------------------------------------
2,505,000 Colton Community Facilities District Special Tax 7.500 09/01/2020 2,521,257
- ----------------------------------------------------------------------------------------------------------------
3,280,000 Colton Public Financing Authority, Series B 5.875 08/01/2027 3,316,506
- ----------------------------------------------------------------------------------------------------------------
815,000 Commerce CDC Tax Allocation 5.750 08/01/2010 867,567
- ----------------------------------------------------------------------------------------------------------------
2,800,000 Commerce CDC Tax Allocation 6.000 08/01/2021 2,832,984
- ----------------------------------------------------------------------------------------------------------------
1,410,000 Commerce Joint Powers Finance Authority
(Community Center), Series A 6.250 10/01/2022 1,466,823
- ----------------------------------------------------------------------------------------------------------------
3,000,000 Compton COP (Civic Center & Capital Improvement) 5.500 09/01/2015 3,064,290
- ----------------------------------------------------------------------------------------------------------------
3,075,000 Contra Costa County Special Tax Community
Facilities District 5.580 08/01/2016 3,116,020
- ----------------------------------------------------------------------------------------------------------------
735,000 Corona (Single Family Mtg.), Series B 6.300 11/01/2028 740,123
- ----------------------------------------------------------------------------------------------------------------
3,345,000 Davis Public Facilities Finance Authority
(Mace Ranch Area) 6.600 09/01/2025 3,503,854
- ----------------------------------------------------------------------------------------------------------------
3,280,000 East Palo Alto Redevel. Agency Tax Allocation
(University Circle-Gateway) 6.625 10/01/2029 3,503,171
- ----------------------------------------------------------------------------------------------------------------
1,500,000 Eastern Municipal Water District Community
Facilities Special Tax 5.950 09/01/2033 1,470,690
- ----------------------------------------------------------------------------------------------------------------
1,530,000 Eastern Municipal Water District Community
Facilities Special Tax 6.100 09/01/2033 1,456,055
- ----------------------------------------------------------------------------------------------------------------
15,000 El Paso De Robles COP 5.400 12/01/2023 15,147
- ----------------------------------------------------------------------------------------------------------------
3,000,000 Elk Grove Special Tax (East Franklin Community) 6.000 08/01/2033 3,003,360
- ----------------------------------------------------------------------------------------------------------------
2,750,000 Encinitas Special Tax Community Facilities
District No. 1, Series A 5.875 09/01/2020 2,756,490
- ----------------------------------------------------------------------------------------------------------------
1,625,000 Folsom Special Tax Community Facilities
District No. 10 6.300 09/01/2012 1,713,920
- ----------------------------------------------------------------------------------------------------------------
8,500,000 Folsom Special Tax Community Facilities
District No. 10 6.875 09/01/2019 9,023,345
- ----------------------------------------------------------------------------------------------------------------
3,400,000 Fontana Redevel. Agency (Jurupa Hills) 5.500 10/01/2027 3,338,630
- ----------------------------------------------------------------------------------------------------------------
12,500,000 Foothill Eastern Transportation Corridor
Agency Toll Road 0.000 z 01/15/2021 4,368,000
- ----------------------------------------------------------------------------------------------------------------
13,000,000 Foothill Eastern Transportation Corridor
Agency Toll Road 0.000 z 01/15/2022 4,216,420
- ----------------------------------------------------------------------------------------------------------------
16,650,000 Foothill Eastern Transportation Corridor
Agency Toll Road 0.000 z 01/15/2030 3,205,957
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Foothill Eastern Transportation Corridor
Agency Toll Road 5.750 01/15/2040 1,012,310
- ----------------------------------------------------------------------------------------------------------------
3,000,000 Huntington Park Public Financing Authority,
Series A 6.200 10/01/2025 3,091,710
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Irvine GO 5.550 09/02/2026 967,000
- ----------------------------------------------------------------------------------------------------------------
2,500,000 Jurupa Community Facilites District Special Tax 5.875 09/01/2033 2,422,425
- ----------------------------------------------------------------------------------------------------------------
115,000 Kern Valley Hospital District 6.500 08/01/2021 116,530
12 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
Principal Market Value
Amount Coupon Maturity See Note 1
- ----------------------------------------------------------------------------------------------------------------
California Continued
$ 10,000,000 La Verne COP (Bethren Hillcrest Homes) 5.600% 02/15/2033 $ 9,875,900
- ----------------------------------------------------------------------------------------------------------------
4,500,000 La Verne COP (Bethren Hillcrest Homes) 6.625 02/15/2025 4,418,910
- ----------------------------------------------------------------------------------------------------------------
500,000 Lafayette Redevel. Agency 5.700 08/01/2024 500,850
- ----------------------------------------------------------------------------------------------------------------
8,010,000 Lake Elsinore School FA (Horsethief Canyon) 5.625 09/01/2016 8,350,986
- ----------------------------------------------------------------------------------------------------------------
2,885,000 Lincoln IBA Public Financing Authority
(Twelve Bridges) 6.200 09/02/2025 2,957,529
- ----------------------------------------------------------------------------------------------------------------
50,000 Los Angeles County Metropolitan
Transportation Authority 5.250 07/01/2023 50,215
- ----------------------------------------------------------------------------------------------------------------
20,000 Los Angeles Department of Water & Power 5.700 09/01/2010 20,469
- ----------------------------------------------------------------------------------------------------------------
40,000 Los Angeles Department of Water & Power 5.750 09/01/2012 40,846
- ----------------------------------------------------------------------------------------------------------------
25,000 Los Angeles Department of Water & Power 5.875 09/01/2030 25,570
- ----------------------------------------------------------------------------------------------------------------
2,375,000 Los Angeles Department of Water & Power RITES a 16.028 f 07/01/2024 2,223,285
- ----------------------------------------------------------------------------------------------------------------
75,000 Los Angeles Harbor Department, Series B 5.375 11/01/2019 75,968
- ----------------------------------------------------------------------------------------------------------------
415,000 Los Angeles Single Family Mtg. (Government National
Mortgage Assn. & FNMA Mtg. Backed), Series A 6.875 06/01/2025 415,930
- ----------------------------------------------------------------------------------------------------------------
2,500,000 Los Angeles USD ROLs a 10.290 f 07/01/2015 3,188,675
- ----------------------------------------------------------------------------------------------------------------
2,500,000 Los Angeles USD ROLs a 10.290 f 07/01/2016 3,188,675
- ----------------------------------------------------------------------------------------------------------------
1,500,000 Los Angeles USD ROLs a 10.290 f 07/01/2017 1,913,205
- ----------------------------------------------------------------------------------------------------------------
30,000 Los Angeles Wastewater System, Series D 5.200 11/01/2021 30,919
- ----------------------------------------------------------------------------------------------------------------
25,000 Marysville Hsg. (Lakeside Village) 7.700 07/01/2023 25,066
- ----------------------------------------------------------------------------------------------------------------
20,000 Monterey Joint Power Authority Finance Authority
(Materials Recovery Facilities) 5.600 03/01/2012 20,466
- ----------------------------------------------------------------------------------------------------------------
20,000 Monterey Joint Power Authority Finance Authority
(Materials Recovery Facilities) 5.700 03/01/2016 20,661
- ----------------------------------------------------------------------------------------------------------------
2,000,000 Mountain View Los Altos GO (Union School District) 6.500 05/01/2017 2,277,580
- ----------------------------------------------------------------------------------------------------------------
1,065,000 Mountain View School District GO Santa Clara
County, Series B 6.125 07/01/2025 1,180,829
- ----------------------------------------------------------------------------------------------------------------
525,000 MSR Public Power Agency San Juan Project, Series H 5.900 07/01/2020 533,505
- ----------------------------------------------------------------------------------------------------------------
1,695,000 Murrieta USD Special Tax 6.250 09/01/2034 1,696,390
- ----------------------------------------------------------------------------------------------------------------
1,320,000 Norco Special Tax Community Facilities District
No. 97-1 7.100 10/01/2030 1,419,185
- ----------------------------------------------------------------------------------------------------------------
5,100,000 Northern CA Tobacco Securitization Authority (TASC) 5.375 06/01/2041 3,678,477
- ----------------------------------------------------------------------------------------------------------------
30,000 Oakland GO 6.000 06/15/2017 30,394
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Orange County Community Facilities District
(Ladera Ranch), Series A 6.000 08/15/2025 1,004,080
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Orange County Community Facilities District
(Ladera Ranch), Series A 6.000 08/15/2032 1,002,810
- ----------------------------------------------------------------------------------------------------------------
2,000,000 Orange County Community Facilities District
(Ladera Ranch), Series A 6.250 08/15/2030 2,044,460
- ----------------------------------------------------------------------------------------------------------------
2,250,000 Orange County Community Facilities District
(Ladera Ranch), Series A 6.700 08/15/2029 2,410,493
- ----------------------------------------------------------------------------------------------------------------
395,000 Orange Redevel. Agency (Southwest Redevel.) 5.700 10/01/2023 403,129
- ----------------------------------------------------------------------------------------------------------------
2,500,000 Perris Community Facilities District Special Tax
(Chaparral Ridge) 6.250 09/01/2033 2,374,500
- ----------------------------------------------------------------------------------------------------------------
3,500,000 Pittsburg Redevel. Agency
(Los Medanos Community Devel.) 6.200 08/01/2019 3,706,325
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Placentia USD (Yorba-Linda) 6.000 09/01/2032 1,000,690
- ----------------------------------------------------------------------------------------------------------------
2,000,000 Pleasant Hill Community Facilities District
Special Tax 6.000 09/01/2032 1,976,820
- ----------------------------------------------------------------------------------------------------------------
60,000 Pleasant Hill Redevel. Agency (Residential Mtg.) 5.750 08/01/2011 60,049
13 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount Coupon Maturity See Note 1
- ----------------------------------------------------------------------------------------------------------------
California Continued
$ 500,000 Pomona (Single Family Mtg.), Series B 7.500% 08/01/2023 $ 644,595
- ----------------------------------------------------------------------------------------------------------------
2,500,000 Port Oakland RITES a 10.176 f 11/01/2015 2,844,375
- ----------------------------------------------------------------------------------------------------------------
2,500,000 Port Oakland RITES a 10.426 f 11/01/2017 2,842,875
- ----------------------------------------------------------------------------------------------------------------
2,430,000 Port Oakland RITES a 15.959 f 11/01/2022 2,200,316
- ----------------------------------------------------------------------------------------------------------------
5,025,000 Port Oakland RITES 15.959 f 11/01/2032 4,146,429
- ----------------------------------------------------------------------------------------------------------------
2,660,000 Port Oakland RITES a 17.459 f 11/01/2025 2,759,644
- ----------------------------------------------------------------------------------------------------------------
35,000 Poway Redevel. Agency (Paguay Redevel.) 5.500 12/15/2023 36,096
- ----------------------------------------------------------------------------------------------------------------
1,100,000 Poway USD Special Tax Community Facilities
District No. 6 5.600 09/01/2033 1,052,986
- ----------------------------------------------------------------------------------------------------------------
1,750,000 Poway, CA USD Special Tax 6.125 09/01/2033 1,763,178
- ----------------------------------------------------------------------------------------------------------------
750,000 Redding Electric COP RIBS 10.171 f 06/01/2019 784,065
- ----------------------------------------------------------------------------------------------------------------
3,000,000 Redding Electric COP RIBS 11.641 f 07/08/2022 3,994,020
- ----------------------------------------------------------------------------------------------------------------
2,100,000 Riverside County Public Financing Authority COP 5.750 05/15/2019 2,052,540
- ----------------------------------------------------------------------------------------------------------------
20,000 Robla School District GO, Series A 5.900 09/01/2016 20,061
- ----------------------------------------------------------------------------------------------------------------
15,000 Rosemead Redevel. Agency 5.500 10/01/2018 15,110
- ----------------------------------------------------------------------------------------------------------------
1,235,000 Roseville Woodcreek West Community Facility 5.875 09/01/2008 1,311,051
- ----------------------------------------------------------------------------------------------------------------
1,500,000 Roseville Woodcreek West Community Facility 6.500 09/01/2015 1,587,210
- ----------------------------------------------------------------------------------------------------------------
1,750,000 Roseville Woodcreek West Community Facility 6.700 09/01/2025 1,831,428
- ----------------------------------------------------------------------------------------------------------------
10,000 Sacramento City Financing Authority 6.500 11/01/2004 10,129
- ----------------------------------------------------------------------------------------------------------------
6,800,000 Sacramento Power Authority Cogeneration Project 6.000 07/01/2022 7,462,388
- ----------------------------------------------------------------------------------------------------------------
1,750,000 Sacramento Special Tax
(North Natomas Community Facilities) 6.000 09/01/2028 1,691,620
- ----------------------------------------------------------------------------------------------------------------
3,750,000 San Diego County COP
(Developmental Service Foundation) 5.500 09/01/2027 3,693,225
- ----------------------------------------------------------------------------------------------------------------
50,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 06/01/2018 51,064
- ----------------------------------------------------------------------------------------------------------------
275,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 06/01/2018 281,212
- ----------------------------------------------------------------------------------------------------------------
40,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 09/01/2018 40,634
- ----------------------------------------------------------------------------------------------------------------
1,880,000 San Diego USD GO RITES a 16.098 f 07/01/2027 1,771,336
- ----------------------------------------------------------------------------------------------------------------
15,000 San Francisco City & County Airports Commission 5.500 05/01/2026 15,084
- ----------------------------------------------------------------------------------------------------------------
1,500,000 San Francisco City & County Redevel. Agency
Community Facilities District No. 6 6.125 08/01/2031 1,472,445
- ----------------------------------------------------------------------------------------------------------------
1,500,000 San Francisco City & County Redevel. Agency
Community Facilities District No. 6 6.125 08/01/2031 1,472,445
- ----------------------------------------------------------------------------------------------------------------
125,000 San Francisco City & County Redevel. Agency
Community Facilities District No. 6 6.150 08/01/2021 126,854
- ----------------------------------------------------------------------------------------------------------------
340,000 San Francisco City & County Redevel. Agency
Community Facilities District No. 6 6.200 08/01/2022 345,739
- ----------------------------------------------------------------------------------------------------------------
3,000,000 San Francisco City & County Redevel. Agency
Community Facilities District No. 6 6.250 08/01/2033 3,054,690
- ----------------------------------------------------------------------------------------------------------------
8,000,000 San Joaquin Hills Transportation Corridor Agency 5.000 01/01/2033 7,158,240
- ----------------------------------------------------------------------------------------------------------------
10,000 San Jose Finance Authority, Series B 5.625 11/15/2018 10,227
- ----------------------------------------------------------------------------------------------------------------
3,060,000 Santa Ana Finance Authority (Inner-City Commuter) 5.600 09/01/2019 3,115,814
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Santa Ana Finance Authority (Mainplace) 5.500 09/01/2015 1,013,700
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Santa Ana Finance Authority (Mainplace) 5.600 09/01/2019 1,033,570
- ----------------------------------------------------------------------------------------------------------------
1,600,000 Santa Clarita Community Facilities District
Special Tax 5.800 11/15/2025 1,566,752
14 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
Principal Market Value
Amount Coupon Maturity See Note 1
- ----------------------------------------------------------------------------------------------------------------
California Continued
$ 3,700,000 Santa Clarita Community Facilities District
Special Tax 5.850% 11/15/2032 $ 3,622,004
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Santa Cruz High School District GO 6.000 08/01/2029 1,096,310
- ----------------------------------------------------------------------------------------------------------------
50,000 Santa Cruz Sewer (Secondary Wastewater Treatment) 5.700 11/01/2023 51,139
- ----------------------------------------------------------------------------------------------------------------
4,990,000 Santaluz Special Tax Community Facilities District
No. 2 6.375 09/01/2030 5,071,886
- ----------------------------------------------------------------------------------------------------------------
25,000 Signal Hill Redevel. Agency (Signal Hill Redevel.) 5.500 10/01/2023 25,626
- ----------------------------------------------------------------------------------------------------------------
4,500,000 Southern CA Metro Water District RIBS 9.599 f 10/30/2020 4,975,920
- ----------------------------------------------------------------------------------------------------------------
185,000 Southern CA Public Power Authority 5.500 07/01/2020 185,085
- ----------------------------------------------------------------------------------------------------------------
30,000 Southern CA Public Power Authority 5.500 07/01/2020 30,078
- ----------------------------------------------------------------------------------------------------------------
5,000 Southern CA Public Power Authority 5.500 07/01/2020 5,002
- ----------------------------------------------------------------------------------------------------------------
30,000 Southern CA Public Power Authority 6.000 07/01/2018 30,029
- ----------------------------------------------------------------------------------------------------------------
250,000 Southern CA Public Power Authority 7.000 07/01/2009 250,980
- ----------------------------------------------------------------------------------------------------------------
150,000 Southern CA Public Power Authority RIBS 10.550 f 07/01/2012 153,924
- ----------------------------------------------------------------------------------------------------------------
65,000 Southern CA Rapid Transit District COP 6.000 07/01/2010 66,194
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Southern CA Tobacco Securitization Authority (TASC) 5.500 06/01/2036 768,240
- ----------------------------------------------------------------------------------------------------------------
3,750,000 Stockton Community Facilities District
(Brookside Estates) 6.200 08/01/2015 3,916,538
- ----------------------------------------------------------------------------------------------------------------
135,000 Stockton Public Finance Authority, Series A 5.875 09/02/2016 143,099
- ----------------------------------------------------------------------------------------------------------------
3,000,000 Tejon Ranch Public Facilities Finance Authority
Special Tax (Community Facilities District No. 1) 7.200 09/01/2030 3,091,440
- ----------------------------------------------------------------------------------------------------------------
2,000,000 Temecula Public Financing Authority Community
Facilities District No. 3 w 6.000 09/01/2033 1,976,540
- ----------------------------------------------------------------------------------------------------------------
25,000 Temecula Valley USD GO 6.250 09/01/2013 25,087
- ----------------------------------------------------------------------------------------------------------------
30,000 Tracy COP (Community Park & Civic Center) 6.625 03/01/2018 30,033
- ----------------------------------------------------------------------------------------------------------------
50,000 Tracy Special Tax Community Facilities District 5.700 09/01/2020 50,199
- ----------------------------------------------------------------------------------------------------------------
15,000 Turlock Irrigation District, Series A 6.000 01/01/2020 15,051
- ----------------------------------------------------------------------------------------------------------------
165,000 University of California Research Facilities,
Series A 5.750 09/01/2018 165,455
- ----------------------------------------------------------------------------------------------------------------
5,935,000 Valley Health System COP 6.875 05/15/2023 4,025,236
- ----------------------------------------------------------------------------------------------------------------
75,000 Valley Health System, Series A 6.500 05/15/2025 78,485
- ----------------------------------------------------------------------------------------------------------------
35,000 West Sacramento Financing Authority 5.500 08/01/2024 35,871
- ----------------------------------------------------------------------------------------------------------------
3,000,000 Yucaipa Community Facilities District Special Tax 5.750 09/01/2030 2,855,790
------------
485,800,570
- ----------------------------------------------------------------------------------------------------------------
U.S. Possessions--11.8%
2,245,000 Puerto Rico HBFA 6.250 04/01/2029 2,312,013
- ----------------------------------------------------------------------------------------------------------------
5,510,000 Puerto Rico ITEMECF (Congeneration Facilities) 6.625 06/01/2026 5,707,533
- ----------------------------------------------------------------------------------------------------------------
2,840,000 Puerto Rico ITEMECF (Mennonite General Hospital) 6.500 07/01/2012 2,673,292
- ----------------------------------------------------------------------------------------------------------------
22,350,000 Puerto Rico Port Authority (American Airlines),
Series A 6.250 06/01/2026 12,069,224
- ----------------------------------------------------------------------------------------------------------------
50,000 Puerto Rico Port Authority (American Airlines),
Series A 6.300 06/01/2023 27,000
- ----------------------------------------------------------------------------------------------------------------
500,000 Puerto Rico Port Authority, Series D 7.000 07/01/2014 515,300
- ----------------------------------------------------------------------------------------------------------------
27,000,000 V.I. Public Finance Authority (Hovensa Coker) 6.500 07/01/2021 27,063,990
- ----------------------------------------------------------------------------------------------------------------
4,515,000 V.I. Public Finance Authority, Series A 6.375 10/01/2019 5,027,407
- ----------------------------------------------------------------------------------------------------------------
5,150,000 V.I. Public Finance Authority, Series E 6.000 10/01/2022 5,183,733
------------
60,579,492
- ----------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $563,661,851)--106.3% 546,380,062
- ----------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets--(6.3) (32,261,898)
------------
Net Assets--100.0% $514,118,164
============
15 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
Footnotes to Statement of Investments
a. Identifies issues considered to be illiquid. See Note 5 of Notes to Financial
Statements.
f. Represents the current interest rate for a variable rate bond known as an
"inverse floater." See Note 1 of Notes to Financial Statements.
w. When-issued security to be delivered and settled after July 31, 2003. See
Note 1 of Notes to Financial Statements.
z. Represents a zero coupon bond.
To simplify the listings of securities, abbreviations are used per the table
below:
CDA Communities Development Authority
CDC Community Development Corp.
COP Certificates of Participation
EFA Educational Facilities Authority
FA Facilities Authority
GO General Obligation
HBFA Housing Bank and Finance Agency
HFA Housing Finance Agency
IBA Improvement Bond Act 1915
I&E Infrastructure and Economic
INFLOS Inverse Floating Rate Securities
ITEMECF Industrial, Tourist, Educational, Medical and Environmental
Community Facilities
MSR Modesto Irrigation District of the City of Santa Clara and the
City of Redding
RIBS Residual Interest Bonds
RITES Residual Interest Tax Exempt Security
ROLs Residual Option Longs
TASC Tobacco Settlement Asset-Backed Bonds
USD Unified School District
VI United States Virgin Islands
- -----------------------------------------------------------------------------
Industry Concentrations July 31, 2003
Distribution of investments by industry of issue, as a percentage of total
investments at value, is as follows:
Industry Market Value Percent
- -----------------------------------------------------------------------------
Tobacco Settlements $141,824,021 26.0%
Special Tax 84,394,235 15.4
Special Assessment 53,280,223 9.8
Pollution Control 34,911,151 6.4
Higher Education 27,847,188 5.1
Adult Living Facilities 20,975,121 3.8
Highways/Railways 20,077,336 3.7
Electric Utilities 19,693,585 3.6
General Obligation 17,033,536 3.1
Hospital/Health Care 16,003,953 2.9
Education 15,637,612 2.9
Marine/Aviation Facilities 15,399,991 2.8
Municipal Leases 14,943,284 2.7
Airlines 12,096,224 2.2
Water Utilities 10,367,854 1.9
Sales Tax Revenue 10,221,269 1.9
Not-for-Profit Organization 9,041,651 1.7
Hotels, Restaurants & Leisure 7,936,560 1.5
Single Family Housing 7,750,880 1.4
Multifamily Housing 6,836,404 1.2
Sewer Utilities 107,984 --
------------------------------
Total $546,380,062 100.0%
==============================
16 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
- -------------------------------------------------------------------------------
Summary of Ratings July 31, 2003 / Unaudited
Distribution of investments by rating category, as a percentage of total
investments at value, is as follows:
Rating Percent
- -------------------------------------------------------------------------------
AAA 10.2%
AA 2.2
A 34.3
BBB 28.6
BB 1.1
B 0.5
CCC 2.2
CC 0.0
C 0.0
D 0.0
Not Rated 20.9
------
Total 100.0%
======
Bonds rated by any nationally recognized statistical rating organization are
included in the equivalent Standard & Poor's rating category. As a general
matter, unrated bonds may be backed by mortgage liens or equipment liens on the
underlying property, and also may be guaranteed. Bonds which are backed by a
letter of credit or by other financial institutions or agencies may be assigned
an investment-grade rating by the Manager, which reflects the quality of the
guarantor, institution or agency. Unrated bonds may also be assigned a rating
when the issuer has rated bonds outstanding with comparable credit
characteristics, or when, in the opinion of the Manager, the bond itself
possesses credit characteristics which allow for rating. The unrated bonds in
the portfolio are predominantly smaller issuers which have not applied for a
bond rating. Only those unrated bonds which subsequent to purchase have not been
designated investment grade by the Manager are included in the "Not Rated"
category.
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES July 31, 2003
- ------------------------------------------------------------------------------
Assets
Investments, at value (cost $563,661,851)--see
accompanying statement $ 546,380,062
- ------------------------------------------------------------------------------
Cash 428,592
- ------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 10,059,220
Interest 9,470,796
Shares of beneficial interest sold 691,161
Other 3,673
---------------
Total assets 567,033,504
- ------------------------------------------------------------------------------
Liabilities
Payables and other liabilities:
Notes payable to bank (interest rate 1.75% at July 31, 2003) 46,800,000
Investments purchased (including $3,805,400 purchased
on a when-issued basis) 3,839,343
Shares of beneficial interest redeemed 1,301,268
Dividends 639,059
Distribution and service plan fees 110,078
Trustees' compensation 94,567
Shareholder reports 80,499
Transfer and shareholder servicing agent fees 22,750
Other 27,776
---------------
Total liabilities 52,915,340
- ------------------------------------------------------------------------------
Net Assets $514,118,164
---------------
- ------------------------------------------------------------------------------
Composition of Net Assets
Par value of shares of beneficial interest $ 51,578
- ------------------------------------------------------------------------------
Additional paid-in capital 537,323,788
- ------------------------------------------------------------------------------
Undistributed net investment income 1,293,323
- ------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (7,268,736)
- ------------------------------------------------------------------------------
Net unrealized depreciation on investments (17,281,789)
---------------
Net Assets $514,118,164
===============
18 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
- -------------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on
net assets of $385,141,149 and 38,639,509 shares of
beneficial interest outstanding) $ 9.97
Maximum offering price per share (net asset value
plus sales charge of 4.75% of offering price) $10.47
- -------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $101,079,458
and 10,134,641
shares of beneficial interest outstanding) $ 9.97
- -------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $27,897,557
and 2,803,435 shares of beneficial interest outstanding) $ 9.95
See accompanying Notes to Financial Statements.
19 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF OPERATIONS For the Year Ended July 31, 2003
- -------------------------------------------------------------------------------
Investment Income
Interest $ 38,048,758
- -------------------------------------------------------------------------------
Expenses
Management fees 3,001,975
- -------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 997,715
Class B 1,186,868
Class C 270,032
- -------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 167,940
Class B 57,128
Class C 14,827
- -------------------------------------------------------------------------------
Interest expense 515,373
- -------------------------------------------------------------------------------
Shareholder reports 170,895
- -------------------------------------------------------------------------------
Custodian fees and expenses 25,123
- -------------------------------------------------------------------------------
Trustees' compensation 24,336
- -------------------------------------------------------------------------------
Other 69,019
-------------
Total expenses 6,501,231
Less reduction to custodian expenses (3,999)
-------------
Net expenses 6,497,232
- -------------------------------------------------------------------------------
Net Investment Income 31,551,526
- -------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain on investments 24,391,797
- -------------------------------------------------------------------------------
Net change in unrealized depreciation on investments (60,092,630)
- -------------------------------------------------------------------------------
Net Decrease in Net Assets Resulting from Operations $(4,149,307)
=============
See accompanying Notes to Financial Statements.
20 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended July 31, 2003 2002
- ---------------------------------------------------------------------------------------------------
Operations
Net investment income $ 31,551,526 $ 26,954,856
- ---------------------------------------------------------------------------------------------------
Net realized gain 24,391,797 108,424
- ---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) (60,092,630) 4,867,158
---------------------------------
Net increase (decrease) in net assets resulting from operations (4,149,307) 31,930,438
- ---------------------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (22,799,725) (19,848,864)
Class B (5,652,080) (5,596,265)
Class C (1,298,059) (921,160)
- ---------------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 686,685 18,134,224
Class B (20,852,100) (9,686,856)
Class C 4,701,867 6,669,760
- ---------------------------------------------------------------------------------------------------
Net Assets
Total increase (decrease) (49,362,719) 20,681,277
- ---------------------------------------------------------------------------------------------------
Beginning of period 563,480,883 542,799,606
---------------------------------
End of period [including undistributed
(overdistributed) net investment income
of $1,293,323 and $(508,339), respectively] $514,118,164 $563,480,883
=================================
See accompanying Notes to Financial Statements.
21 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF CASH FLOWS For the Year Ended July 31, 2003
- -----------------------------------------------------------------------------------
Cash Flows from Operating Activities
Net decrease in net assets from operations $ (4,149,307)
- -----------------------------------------------------------------------------------
Adjustments to reconcile net decrease in net assets from operations
to net cash used in operating activities:
Purchase of investment securities (372,111,901)
Proceeds from disposition of investment securities 366,226,623
Increase in interest receivable (2,038,840)
Decrease in receivable for securities sold 42,006,849
Decrease in other assets 227,697
Decrease in payable for securities purchased (68,873,602)
Increase in accrued expenses 68,835
Amortization (1,468,071)
Realized gain on securities (24,391,797)
Unrealized depreciation on securities 60,092,630
---------------
Net cash used in operating activities (4,410,884)
- -----------------------------------------------------------------------------------
Cash Flows from Financing Activities
Proceeds from issuance of debt 307,900,000
Payments on outstanding debt (261,100,000)
Proceeds from shares sold 125,210,317
Payment on shares redeemed (159,048,135)
Cash distributions paid (11,375,594)
---------------
Net cash provided by financing activities 1,586,588
- -----------------------------------------------------------------------------------
Net decrease in cash (2,824,296)
- -----------------------------------------------------------------------------------
Cash, beginning balance 3,252,888
---------------
Cash, ending balance $ 428,592
===============
See accompanying Notes to Financial Statements.
22 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
Class A Year Ended July 31 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $10.60 $10.49 $10.11 $10.57 $10.92
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .63 .53 .53 .53 .53
Net realized and unrealized gain (loss) (.66) .10 .38 (.46) (.35)
--------------------------------------------------------------
Total from investment operations (.03) .63 .91 .07 .18
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.60) (.52) (.53) (.53) (.53)
Distributions from net realized gain -- -- -- -- --
--------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.60) (.52) (.53) (.53) (.53)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.97 $10.60 $10.49 $10.11 $10.57
==============================================================
- ---------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 (0.57)% 6.20% 9.17% 0.86% 1.59%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $385,141 $409,689 $387,388 $270,494 $316,363
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $410,237 $398,651 $344,808 $283,025 $314,094
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.88% 5.09% 5.08% 5.34% 4.79%
Total expenses 0.96% 0.86% 0.88% 0.91% 0.91%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses N/A 3 0.86% 4 0.87% 4 0.91% 4 0.91% 4
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 63% 27% 20% 48% 35%
1. Assumes an 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 of 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.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Excludes interest expense.
See accompanying Notes to Financial Statements.
23 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FINANCIAL HIGHLIGHTS Continued
Class B Year Ended July 31 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $10.61 $ 10.50 $ 10.11 $ 10.57 $ 10.92
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .55 .45 .45 .45 .45
Net realized and unrealized gain (loss) (.68) .10 .39 (.45) (.35)
------------------------------------------------------------
Total from investment operations (.13) .55 .84 -- .10
- --------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.51) (.44) (.45) (.46) (.45)
Distributions from net realized gain -- -- -- -- --
------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.51) (.44) (.45) (.46) (.45)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.97 $10.61 $10.50 $10.11 $10.57
============================================================
- --------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 (1.42)% 5.39% 8.46% 0.10% 0.82%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $101,079 $128,857 $137,307 $105,393 $132,763
- --------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $118,611 $132,685 $126,060 $113,936 $129,538
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.09% 4.32% 4.33% 4.57% 4.03%
Total expenses 1.73% 1.62% 1.63% 1.67% 1.67%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses N/A 3 1.62% 4 1.62% 4 1.67% 4 1.67% 4
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 63% 27% 20% 48% 35%
1. Assumes an 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 of 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.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Excludes interest expense.
See accompanying Notes to Financial Statements.
24 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
Class C Year Ended July 31, 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
- ------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $10.58 $ 10.48 $ 10.09 $ 10.55 $ 10.91
- ------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .54 .46 .45 .45 .45
Net realized and unrealized gain (loss) (.66) .08 .39 (.45) (.36)
------------------------------------------------------------
Total from investment operations (.12) .54 .84 -- .09
- ------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.51) (.44) (.45) (.46) (.45)
Distributions from net realized gain -- -- -- -- --
------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.51) (.44) (.45) (.46) (.45)
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.95 $10.58 $10.48 $10.09 $10.55
============================================================
- ------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 (1.33)% 5.31% 8.48% 0.10% 0.73%
- ------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $27,898 $24,936 $18,105 $12,659 $16,864
- ------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $27,011 $21,775 $14,489 $14,424 $14,672
- ------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.12% 4.33% 4.32% 4.58% 4.03%
Total expenses 1.73% 1.62% 1.63% 1.67% 1.67%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses N/A 3 1.62% 4 1.62% 4 1.67% 4 1.67% 4
- ------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 63% 27% 20% 48% 35%
1. Assumes an 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 of 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.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Excludes interest expense.
See accompanying Notes to Financial Statements.
25 | 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 advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are sold
at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights and voting privileges. Earnings, net
assets and net asset value per share may differ by minor amounts due to each
class having its own expenses directly attributable to that class. Classes A, B
and C have separate distribution and/or service plans. Class B shares will
automatically convert to Class A shares six years after the date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
Securities Valuation. Securities listed or traded on National Stock Exchanges
or other domestic or foreign exchanges are valued based on the last sale price
of the security traded on that exchange prior to the time when the Fund's
assets are valued. Securities traded on NASDAQ are valued based on the closing
price provided by NASDAQ prior to the time when the Fund's assets are valued.
In the absence of a sale, the security is valued at the last sale price on the
prior trading day, if it is within the spread of the closing bid and asked
prices, and if not, at the closing bid price. Securities (including restricted
securities) for which quotations are not readily available are valued primarily
using dealer-supplied valuations, a portfolio pricing service authorized by the
Board of Trustees, or at their fair value. Fair value is determined in good
faith using consistently applied procedures under the supervision of the Board
of Trustees. Short-term "money market type" debt securities with remaining
maturities of sixty days or less are valued at amortized cost (which
approximates market value).
- --------------------------------------------------------------------------------
Securities on a When-Issued or Forward Commitment Basis. Delivery and payment
for securities that have been purchased by the Fund on a when-issued basis can
take place a month or more after the trade date. Normally the settlement date
occurs within six months after the trade date; however, the Fund may, from time
to time, purchase securities whose settlement date extends six months or more
beyond 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 Fund maintains segregated assets with a market value
equal to or greater than the amount of its commitments. These transactions 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
26 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
substantially fully invested. As of July 31, 2003, the Fund had entered into
when-issued purchase commitments or forward commitments of $3,805,400.
- --------------------------------------------------------------------------------
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. Certain of these securities may be leveraged, whereby the
interest rate varies inversely at a multiple of the change in short-term rates.
As interest rates rise, inverse floaters produce less current income. The price
of such securities is more volatile than comparable fixed rate securities. The
Fund intends to invest no more than 20% of its total assets in inverse
floaters. Inverse floaters amount to $52,075,213 as of July 31, 2003. Including
the effect of leverage, inverse floaters represent 14.68% of the Fund's total
assets as of July 31, 2003.
- --------------------------------------------------------------------------------
Security Credit Risk. There are certain risks arising from geographic
concentration in any State. Certain revenue or tax related events in a state
may impair the ability of certain issuers of municipal securities to pay
principal and interest on their obligations.
- --------------------------------------------------------------------------------
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 tax components of capital shown in the table below 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
investment for federal income tax purposes.
Net Unrealized
Depreciation
Undistributed Undistributed Accumulated Based on Cost of
Net Investment Long-Term Loss Securities for Federal
Income Gain Carryforward 1,2 Income Tax Purposes
---------------------------------------------------------------------------------------
$2,024,937 $-- $7,162,213 $17,388,316
1. As of July 31, 2003, the Fund had $7,162,213 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of July 31, 2003, details
of the capital loss carryforwards were as follows:
Expiring
----------------------
2009 $7,162,213
2. During the fiscal years ended July 31, 2003 and July 31, 2002, the Fund
utilized $23,695,023 and $147,077, respectively, of capital loss carryforwards
to offset capital gains realized in the respective fiscal year.
27 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
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, 2003. Net assets of
the Fund were unaffected by the reclassifications.
To (From) To Net
Ordinary Capital Tax Return Investment
Income (Loss) Loss of Capital Loss
-------------------------------------------------------------------
$-- $6,785,477 $-- $--
The tax character of distributions paid during the years ended July 31, 2003
and July 31, 2002 was as follows:
Year Ended Year Ended
July 31, 2003 July 31, 2002
--------------------------------------------------------------------
Distributions paid from:
Exempt-interest dividends $29,749,864 $26,366,289
The aggregate cost of investments and the composition of unrealized
appreciation and depreciation of investments for federal income tax purposes as
of July 31, 2003 are noted below. The primary difference between book and tax
appreciation or depreciation of investments, if applicable, is attributable to
the tax deferral of losses or tax realization of financial statement unrealized
gain or loss.
Federal Tax Cost $563,768,378
=============
Gross unrealized appreciation $ 13,871,438
Gross unrealized depreciation (31,259,754)
-------------
Net unrealized depreciation $(17,388,316)
=============
- --------------------------------------------------------------------------------
Trustees' Compensation. The Fund has adopted an unfunded retirement plan for
the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the year ended
July 31, 2003, the Fund's projected benefit obligations were increased by
$3,747 and payments of $7,907 were made to retired trustees, resulting in an
accumulated liability of $92,554 as of July 31, 2003.
The Board of Trustees has adopted a deferred compensation 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. Under the plan, deferred amounts are treated as though equal dollar
amounts had been invested in shares of the Fund or are invested in other
selected Oppenheimer funds. 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 to the Plan.
28 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income distributions, if any, are
declared daily and paid monthly. Capital gain distributions, if any, are
declared and paid annually.
- --------------------------------------------------------------------------------
Investment Income. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.
- --------------------------------------------------------------------------------
Expense Offset Arrangement. The reduction of custodian fees represents earnings
on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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 income and
expenses during the reporting period. Actual results could differ from those
estimates.
- --------------------------------------------------------------------------------
2. 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, 2003 Year Ended July 31, 2002
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------
Class A
Sold 8,766,917 $ 91,812,775 7,969,918 $ 83,926,368
Dividends and/or
distributions reinvested 1,319,683 13,774,616 1,036,260 10,886,119
Redeemed (10,095,373) (104,900,706) (7,279,698) (76,678,263)
------------------------------------------------------------------------
Net increase (decrease) (8,773) $ 686,685 1,726,480 $ 18,134,224
========================================================================
- -----------------------------------------------------------------------------------------------------
Class B
Sold 1,596,238 $ 16,769,161 1,764,818 $ 18,593,486
Dividends and/or
distributions reinvested 351,551 3,673,171 313,390 3,295,115
Redeemed (3,961,809) (41,294,432) (3,009,598) (31,575,457)
------------------------------------------------------------------------
Net decrease (2,014,020) $ (20,852,100) (931,390) $ (9,686,856)
========================================================================
- -----------------------------------------------------------------------------------------------------
Class C
Sold 1,603,845 $ 16,628,381 1,120,468 $ 11,784,641
Dividends and/or
distributions reinvested 88,937 926,483 54,237 568,382
Redeemed (1,245,225) (12,852,997) (546,880) (5,683,263)
------------------------------------------------------------------------
Net increase 447,557 $ 4,701,867 627,825 $ 6,669,760
========================================================================
29 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended July 31, 2003, were
$372,096,862 and $366,226,623, respectively.
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.60% of the first $200 million of average annual net assets,
0.55% of the next $100 million, 0.50% of the next $200 million, 0.45% of the
next $250 million, 0.40% of the next $250 million, and 0.35% of average annual
net assets over $1 billion. Effective January 1, 2000, the Manager has
voluntarily undertaken to limit its management fees to a maximum annual rate of
0.55% of average annual net assets for each class of shares. The Manager can
withdraw that waiver at any time.
- --------------------------------------------------------------------------------
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, 2003, the Fund
paid $254,202 to OFS for services to the Fund.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees for all classes, up to an annual rate of 0.35% of average net assets per
class. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
Distribution and Service Plan (12b-1) Fees. Under its General Distributor's
Agreement with the Manager, OppenheimerFunds Distributor, Inc.
(the Distributor) acts as the Fund's principal underwriter in the continuous
public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the
period indicated.
Aggregate Class A Concessions Concessions Concessions
Front-End Front-End on Class A on Class B on Class C
Sales Charges Sales Charges Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1
- -------------------------------------------------------------------------------------------------------------
July 31, 2003 $782,068 $162,029 $35,397 $537,278 $141,244
1. The Distributor advances concession payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
Class A Class B Class C
Contingent Contingent Contingent
Deferred Deferred Deferred
Sales Charges Sales Charges Sales Charges
Retained by Retained by Retained by
Year Ended Distributor Distributor Distributor
- ----------------------------------------------------------------------------------
July 31, 2003 $30,270 $432,617 $14,447
30 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
Service Plan for Class A Shares. The Fund has adopted a Service Plan for Class
A Shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.25% of the average annual net assets of
Class A shares of the Fund. For the year ended July 31, 2003, expense under the
Class A Plan totaled $997,715, all of which were paid by the Distributor to
recipients, which included $36,442 paid to an affiliate of the Manager. Any
unreimbursed expenses the Distributor incurs with respect to Class A shares in
any fiscal year cannot be recovered in subsequent years.
- --------------------------------------------------------------------------------
Distribution and Service Plans for Class B and Class C Shares. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares. Under
the plans, the Fund pays the Distributor an annual asset-based sales charge of
0.75% per year on Class B shares and on Class C shares. The Distributor also
receives a service fee of 0.25% per year under each plan.
Distribution fees paid to the Distributor for the year ended July 31, 2003,
were as follows:
Distributor's
Distributor's Aggregate
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
- --------------------------------------------------------------------------------------------------
Class B Plan $1,186,868 $918,465 $2,874,866 2.84%
Class C Plan 270,032 93,838 583,134 2.09
- --------------------------------------------------------------------------------
5. Illiquid Securities
As of July 31, 2003, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. The
Fund intends to invest no more than 15% of its net assets (determined at the
time of purchase and reviewed periodically) in illiquid securities. The
aggregate value of illiquid securities subject to this limitation as of July
31, 2003 was $32,788,175, which represents 6.38% of the Fund's net assets.
- --------------------------------------------------------------------------------
6. Bank Borrowings
The Fund may borrow up to 33 1/3% of its total assets from a bank to purchase
portfolio securities, or for temporary and emergency purposes. The purchase of
securities with borrowed funds creates leverage in the Fund. The Fund has
entered into an agreement which enables it to participate with certain other
Oppenheimer funds in a committed, unsecured line of credit with a bank, which
permits borrowings up to $350 million, collectively. Interest is charged to
each fund, based on its borrowings, at a rate equal to the Federal Funds Rate
plus 0.625%. The Fund also pays a commitment fee equal to its pro rata share of
the average unutilized amount of the credit facility at a rate of 0.09% per
annum.
31 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. Bank Borrowings Continued
The Fund had borrowings outstanding of $46,800,000 at July 31, 2003 at an
interest rate of 1.75%. For the year ended July 31, 2003, the average monthly
loan balance was $27,036,072 at an average daily interest rate of 1.963%. The
Fund had gross borrowings and gross loan repayments of $307,900,000 and
$261,100,000, respectively, during the year ended July 31, 2003. The maximum
amount of borrowings outstanding at any month-end was $62,400,000. The Fund paid
commitment fees of $1,525 and interest of $513,098 during the year ended July
31, 2003.
32 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
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, 2003, and the related statement of operations and cash flows for
the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of
the five years in the 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 auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of July 31, 2003, 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, 2003, the results of its
operations and its cash flows for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended, in conformity
with accounting principles generally accepted in the United States of America.
KPMG LLP
Denver, Colorado
August 21, 2003
33 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2004, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2003. Regulations of the U.S. Treasury Department require the
Fund to report this information to the Internal Revenue Service.
None of the dividends paid by the Fund during the year ended July 31, 2003
are eligible for the corporate dividend-received deduction. The dividends were
derived from interest on municipal bonds and are not subject to federal income
taxes. To the extent a shareholder is subject to any state or local tax laws,
some or all of the dividends 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.
PORTFOLIO PROXY VOTING
POLICIES AND PROCEDURES 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 1.800.225.5677, (ii) on the Fund's website at
www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In
addition, the Fund will be required to file new 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 first such filing is due no later than August 31, 2004,
for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX
filing will be available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov.
34 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
SHAREHOLDER MEETING Unaudited
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
On August 5, 2002, a special shareholder meeting was held at which all of the
nominated Trustees were elected and all proposals were approved by shareholders
as described in the Fund's proxy statement for that meeting. The following is a
report of the votes cast:
- -------------------------------------------------------------------------------
Proposal No. 1
1. The eleven persons named below to serve as Trustee of the Fund until their
successors are elected and shall qualify:
Nominee For Withheld Total
- --------------------------------------------------------------------------------
Leon Levy* 27,066,091.008 1,045,112.956 28,111,203.964
Donald W. Spiro 27,080,849.652 1,030,354.312 28,111,203.964
John V. Murphy 27,063,052.002 1,048,151.962 28,111,203.964
Robert G. Galli 27,092,273.129 1,018,930.835 28,111,203.964
Phillip A. Griffiths 27,102,892.905 1,008,311.059 28,111,203.964
Benjamin Lipstein* 27,073,404.622 1,037,799.342 28,111,203.964
Elizabeth B. Moynihan* 27,073,863.445 1,037,340.519 28,111,203.964
Kenneth A. Randall 27,088,662.223 1,022,541.741 28,111,203.964
Edward V. Regan 27,089,817.687 1,021,386.277 28,111,203.964
Russell S. Reynolds, Jr. 27,087,062.000 1,024,141.964 28,111,203.964
Clayton K. Yeutter 27,087,015.239 1,024,188.725 28,111,203.964
*Messrs. Levy and Lipstein and Ms. Moynihan resigned from the Board of Trustees
effective January 1, 2003, March 31, 2003 and July 31, 2003, respectively. Each
was elected at the above referenced meeting and served until their respective
dates of resignation.
Broker
For Against Abstain Non-Votes Total
- ------------------------------------------------------------------------------------------------------
Proposal Nos. 2(a) through 2(i)
2(a)Eliminate the Fund's fundamental investment policy with respect to purchasing securities on margin:
19,220,996.953 3,147,594.207 2,161,650.804 3,580,962.000 28,111,203.964
2(b)Amend the Fund's fundamental investment policy with respect to making short sales:
19,405,229.205 2,838,501.331 2,286,511.428 3,580,962.000 28,111,203.964
2(c)Amend the Fund's fundamental investment policy with respect to purchasing real estate:
20,528,397.537 1,917,905.319 2,083,939.108 3,580,962.000 28,111,203.964
2(d)Amend the Fund's fundamental investment policy with respect to purchasing securities of issuers in
which officers or trustees have interest:
18,877,423.957 3,360,317.807 2,292,500.200 3,580,962.000 28,111,203.964
2(e)Amend the Fund's fundamental investment policy with respect to industry concentration:
19,945,528.493 2,105,390.637 2,479,322.834 3,580,962.000 28,111,203.964
2(f)Amend the Fund's fundamental investment policy with respect to investing in
other investment companies:
19,562,664.971 2,595,062.300 2,372,514.693 3,580,962.000 28,111,203.964
2(g)Amend the Fund's fundamental investment policy with respect to borrowing:
18,906,534.502 3,208,804.930 2,414,902.532 3,580,962.000 28,111,203.964
2(h)Amend the Fund's fundamental investment policy with respect to pledging, mortgaging or
hypothecating assets:
19,080,677.333 2,902,181.464 2,547,383.167 3,580,962.000 28,111,203.964
2(i)Amend the Fund's fundamental investment policy with respect to lending:
19,653,734.820 2,479,818.881 2,396,688.263 3,580,962.000 28,111,203.964
35 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
SHAREHOLDER MEETING Unaudited / Continued
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Broker
For Against Abstain Non-Votes Total
- -----------------------------------------------------------------------------------
Proposal Nos. 3(a) through 3(d)
3. Approval of authorizing the Fund's Trustees to adopt an Amended and Restated
Declaration of Trust:
(a)Future amendments of the Declaration of Trust:
19,978,722.474 2,003,251.687 2,548,267.803 3,580,962.000 28,111,203.964
(b)Reorganization of the Trust or its series or class:
20,123,581.000 1,817,515.944 2,589,145.020 3,580,962.000 28,111,203.964
(c)Involuntary redemptions:
19,361,459.758 2,403,050.437 2,765,731.769 3,580,962.000 28,111,203.964
(d)Other changes under the new Declaration of Trust:
19,814,391.963 1,809,515.822 2,906,334.179 3,580,962.000 28,111,203.964
36 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Name, Position(s) Held with Principal Occupation(s) During Past 5 Years; Other Trusteeships/Directorships Held
Fund, Length of Service, Age by Trustee; Number of Portfolios in Fund Complex Currently Overseen by
Trustee
INDEPENDENT The address of each Trustee in the chart below is 6803 S. Tucson Way,
TRUSTEES Centennial, CO 80112-3924. Each Trustee serves for an indefinite term, until his or
her resignation, retirement, death or removal.
Clayton K. Yeutter, Of Counsel (since 1993), Hogan & Hartson (a law firm). Other directorships:
Chairman of the Board Weyerhaeuser Corp. (since 1999) and Danielson Holding Corp. (since 2002);
of Trustees (since 2003), formerly a director of Caterpillar, Inc. (1993-December 2002). Oversees 29
Trustee (since 1991) portfolios in the OppenheimerFunds complex.
Age: 72
Robert G. Galli, A trustee or director of other Oppenheimer funds. Formerly Trustee (May
Trustee (since 1996) 2000-2002) of Research Foundation of AIMR (investment research,
Age: 69 non-profit) and Vice Chairman (October 1995-December 1997) of
OppenheimerFunds, Inc.(the Manager). Oversees 39 portfolios in the
OppenheimerFunds complex.
Phillip A. Griffiths, A director (since 1991) of the Institute for Advanced Study, Princeton, N.J., a
Trustee (since 1999) director (since 2001) of GSI Lumonics, a trustee (since 1983) of Woodward Academy, a
Age: 64 Senior Advisor (since 2001) of The Andrew W. Mellon Foundation. A member of: the
National Academy of Sciences (since 1979), American Academy of Arts and Sciences
(since 1995), American Philosophical Society (since 1996)and Council on Foreign
Relations (since 2002). Formerly a director of Bankers Trust New York Corporation
(1994-1999). Oversees 29 portfolios in the OppenheimerFunds complex.
Joel W. Motley, Director (since 2002) Columbia Equity Financial Corp. (privately-held
Trustee (since 2002) financial adviser); Managing Director (since 2002) Carmona Motley, Inc.
Age: 53 (privately-held financial adviser); Formerly he held the following
positions: Managing Director (January 1998-December 2001), Carmona
Motley Hoffman Inc. (privately-held financial adviser); Managing Director
(January 1992-December 1997), Carmona Motley & Co. (privately-held financial
adviser). Oversees 29 portfolios in the OppenheimerFunds complex.
Kenneth A. Randall, A director of Dominion Resources, Inc. (electric utility holding
Trustee (since 1988) company) and Prime Retail, Inc. (real estate investment trust);
Age: 76 formerly a director of Dominion Energy, Inc. (electric power and oil &
gas producer), President and Chief Executive Officer of The Conference
Board, Inc. (international economic and business research) and a
director of Lumbermens Mutual Casualty Company,
American Motorists Insurance Company and American Manufacturers
MutualInsurance Company. Oversees 29 portfolios in the OppenheimerFunds
complex.
Edward V. Regan, President, Baruch College, CUNY; a director of RBAsset (real estate
Trustee (since 1993) manager); a director of OffitBank; formerly Trustee, Financial
Age: 73 Accounting Foundation (FASB and GASB), Senior Fellow of Jerome Levy
Economics Institute, Bard College, Chairman of Municipal Assistance
Corporation for the City of New York, New
York State Comptroller and Trustee of New York State and Local
Retirement Fund. Oversees 29 investment companies in the
OppenheimerFunds complex.
Russell S. Reynolds, Jr., Chairman (since 1993) of The Directorship Search Group, Inc. (corporate
Trustee (since 1989) governance consulting and executive recruiting); a life trustee of
Age: 71 International House (non-profit educational organization), and a
trustee (since 1996) of the Greenwich Historical Society. Oversees 31
portfolios in the OppenheimerFunds complex.
37 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
Donald W. Spiro, Chairman Emeritus (since January 1991) of the Manager. Formerly a director
Vice Chairman of the (January 1969-August 1999) of the Manager. Oversees 29 portfolios in the
Board of Trustees, OppenheimerFunds complex.
Trustee (since 1989)
Age: 77
- --------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE The address of Mr. Murphy in the chart below is 498 Seventh Avenue, New
AND OFFICER York, NY 10018. Mr. Murphy serves for an indefinite term, until his
resignation, death or removal.
John V. Murphy, Chairman, Chief Executive Officer and director (since June 2001) and President
President and Trustee, (since September 2000) of the Manager; President and a director or trustee of other
Trustee (since 2001) Oppenheimer funds; President and a director (since July 2001) of Oppenheimer
Age: 54 Acquisition Corp. (the Manager's parent holding company) and of Oppenheimer
Partnership Holdings, Inc. (a holding company subsidiary of the Manager); a director
(since November 2001) of OppenheimerFunds Distributor, Inc. (a subsidiary of the
Manager); Chairman and a director (since July 2001) of Shareholder Services, Inc.
and of Shareholder Financial Services, Inc. (transfer agent subsidiaries of the
Manager); President and a director (since July 2001) of OppenheimerFunds Legacy
Program (a charitable trust program established by the Manager); a director of the
investment advisory subsidiaries of the Manager: OFI Institutional Asset Management,
Inc. and Centennial Asset Management Corporation (since November 2001), HarbourView
Asset Management Corporation and OFI Private Investments, Inc. (since July 2001);
President (since November 1, 2001) and a director (since July 2001) of Oppenheimer
Real Asset Management, Inc.; a director (since November 2001) of Trinity Investment
Management Corp. and Tremont Advisers, Inc. (investment advisory affiliates of the
Manager); Executive Vice President (since February 1997) of Massachusetts Mutual
Life Insurance Company (the Manager's parent company); a director (since June 1995)
of DLB Acquisition Corporation (a holding company that owns the shares of David L.
Babson & Company, Inc.); formerly, Chief Operating Officer (September 2000-June
2001) of the Manager; President and trustee (November 1999-November 2001) of MML
Series Investment Fund and MassMutual Institutional Funds (open-end investment
companies); a director (September 1999-August 2000) of C.M. Life Insurance Company;
President, Chief Executive Officer and director (September 1999-August 2000) of MML
Bay State Life Insurance Company; a director (June 1989-June 1998) of Emerald Isle
Bancorp and Hibernia Savings Bank (a wholly-owned subsidiary of Emerald Isle
Bancorp). Oversees 73 portfolios in the OppenheimerFunds complex.
- --------------------------------------------------------------------------------------------------------------------------
OFFICERS The address of the Officers in the chart below is as follows: for Mr. Zack, 498
Seventh Avenue, New York, NY 10018, for Mr. Wixted, 6803 S. Tucson Way, Centennial,
CO 80112-3924, for Mr. Fielding, 350 Linden Oaks, Rochester, NY 14625. Each Officer
serves for an annual term or until his or her earlier resignation, death or removal.
Ronald H. Fielding, Senior Vice President (since January 1996) of the Manager; Chairman of the Rochester
Vice President (since 2002) Division of the Manager (since January 1996); an officer of 9 port- folios in the
Age: 54 OppenheimerFunds complex.
38 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
Brian W. Wixted, Senior Vice President and Treasurer (since March 1999) of the Manager; Treasurer
Treasurer (since 1999) (since March 1999) of HarbourView Asset Management Corporation, Shareholder
Age: 43 Services, Inc., Oppenheimer Real Asset Management Corporation, Shareholder Financial
Services, Inc., Oppenheimer Partnership Holdings, Inc., OFI Private Investments,
Inc. (since March 2000), OppenheimerFunds International Ltd. and OppenheimerFunds
plc (offshore fund management subsidiary of the Manager) (since May 2000) and OFI
Institutional Asset Management, Inc. (since November 2000) (offshore fund management
subsidiaries of the Manager); Treasurer and Chief Financial Officer (since May 2000)
of Oppenheimer Trust Company (a trust company subsidiary of the Manager); Assistant
Treasurer (since March 1999) of Oppenheimer Acquisition Corp. and OppenheimerFunds
Legacy Program (since April 2000); formerly Principal and Chief Operating Officer
(March 1995-March 1999), Bankers Trust Company-Mutual Fund Services Division. An
officer of 89 portfolios in the OppenheimerFunds complex.
Robert G. Zack, Senior Vice President (since May 1985) and General Counsel (since February 2002) of
Secretary (since 2001) the Manager; General Counsel and a director (since November 2001) of
Age: 54 OppenheimerFunds Distributor, Inc.; Senior Vice President and General Counsel (since
November 2001) of HarbourView Asset Management Corporation; Vice President and a
director (since November 2000) of Oppenheimer Partnership Holdings, Inc.; Senior
Vice President, General Counsel and a director (since November 2001) of Shareholder
Services, Inc., Shareholder Financial Services, Inc., OFI Private Investments, Inc.,
Oppenheimer Trust Company and OFI Institutional Asset Management, Inc.; General
Counsel (since November 2001) of Centennial Asset Management Corporation; a director
(since November 2001) of Oppenheimer Real Asset Management, Inc.; Assistant
Secretary and a director (since November 2001) of OppenheimerFunds International
Ltd.; Vice President (since November 2001) of OppenheimerFunds Legacy Program;
Secretary (since November 2001) of Oppenheimer Acquisition Corp.; formerly Acting
General Counsel (November 2001-February 2002) and Associate General Counsel (May
1981-October 2001) of the Manager; Assistant Secretary of Shareholder Services, Inc.
(May 1985-November 2001), Shareholder Financial Services, Inc. (November
1989-November 2001); OppenheimerFunds Inter- national Ltd. and OppenheimerFunds plc
(October 1997-November 2001). An officer of 89 portfolios in the OppenheimerFunds
complex.
The Fund's Statement of Additional Information contains additional information
about the Fund's Trustee's and is available without charge upon request.
39 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
ITEM 2. CODE OF ETHICS
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the Fund has determined that Edward V. Regan,
the Chairman of the Board's Audit Committee, possesses the technical attributes
identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an "audit
committee financial expert," and has designated Mr. Regan as the Audit
Committee's financial expert. Mr. Regan is an "independent" Trustee pursuant to
paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED
ITEM 5. NOT APPLICABLE
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. RESERVED
ITEM 9. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-2(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(c)) as of July 31, 2003, registrant's
principal executive officer and principal financial officer found
registrant's disclosure controls and procedures to be appropriately
designed to ensure that information required to be disclosed by
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.
(b) There have been no significant changes in registrant's internal
controls or in other factors that could significantly affect
registrant's internal controls subsequent to the date of the most
recent evaluation as indicated, including no significant deficiencies
or material weaknesses that required corrective action.
ITEM 10. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)