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.
Two World Financial Center, New York, New York 10281-1008
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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, 2003 - January 31, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
STATEMENT OF INVESTMENTS January 31, 2004 / Unaudited
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PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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MUNICIPAL BONDS AND NOTES--104.3%
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CALIFORNIA--91.4%
$ 1,000,000 ABAG Finance Authority for NonProfit Corporations
(Schools of Sacred Heart) 6.450% 06/01/2030 $ 1,071,360
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90,000 ABAG Finance Authority for NonProfit Corporations COP 6.000 08/15/2020 96,392
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450,000 ABAG Finance Authority for NonProfit Corporations COP
(American Baptist Homes of the West) 5.750 10/01/2017 439,686
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440,000 ABAG Finance Authority for NonProfit Corporations COP
(O'Connor Woods) 6.200 11/01/2029 471,869
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4,300,000 ABAG Finance Authority for NonProfit Corporations COP
(Redwood Senior Homes & Services) 6.125 11/15/2032 4,388,021
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55,000 Adelanto Improvement Agency, Series B 5.500 12/01/2023 56,789
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6,360,000 Agua Mansa Industrial Growth Association Special Tax 6.500 09/01/2033 6,469,010
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4,000,000 Anaheim Public Financing Authority RITES i 11.720 r 12/28/2018 5,367,680
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15,000 Anaheim Water 5.750 04/01/2009 15,051
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25,000 Azusa COP 5.750 08/01/2020 25,892
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3,930,000 Azusa Special Tax Community Facilities District
(Mountain Cove) 6.000 09/01/2032 3,978,339
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20,000 Baldwin Park Financing Authority (Community Center) 6.050 08/01/2019 20,845
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5,000,000 Beaumont Financing Authority, Series B 6.000 09/01/2034 4,989,250
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1,000,000 Buena Park Special Tax (Park Mall) 6.100 09/01/2028 1,026,440
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700,000 Buena Park Special Tax (Park Mall) 6.125 09/01/2033 718,900
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5,400,000 CA CDA (Berkeley Montessori School) 7.250 10/01/2033 5,459,130
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8,000,000 CA CDA (East Valley Tourist) 11.000 10/01/2020 8,046,000
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5,000,000 CA CDA (John F. Kennedy University) 6.750 10/01/2033 4,848,800
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6,000,000 CA CDA (Marin Montessori School) 7.000 10/01/2033 6,044,700
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1,400,000 CA CDA (Napa Valley Hospice) 7.000 01/01/2034 1,408,932
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1,650,000 CA CDA (Notre Dame de Namur University) 6.500 10/01/2023 1,639,853
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1,635,000 CA CDA (Notre Dame de Namur University) 6.625 10/01/2033 1,622,427
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270,000 CA CDA COP (Sutter Health) 5.500 08/15/2023 276,145
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1,695,000 CA County Tobacco Securitization Agency (TASC) 5.750 06/01/2027 1,616,454
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7,000,000 CA County Tobacco Securitization Agency (TASC) 5.750 06/01/2029 6,527,710
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6,230,000 CA County Tobacco Securitization Agency (TASC) 5.875 06/01/2027 5,918,874
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9,000,000 CA County Tobacco Securitization Agency (TASC) 5.875 06/01/2035 7,941,150
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10,400,000 CA County Tobacco Securitization Agency (TASC) 6.000 06/01/2035 9,341,800
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17,900,000 CA County Tobacco Securitization Agency (TASC) 6.000 06/01/2042 15,983,089
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10,000,000 CA County Tobacco Securitization Agency (TASC) 6.125 06/01/2038 9,122,100
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100,000 CA Department of Water Resources (Center Valley) 5.250 07/01/2022 100,259
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30,000 CA Department of Water Resources (Center Valley) 5.400 07/01/2012 30,092
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190,000 CA EFA (Carnegie Institution of Washington) 5.600 10/01/2023 194,368
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20,000 CA EFA (College and University Financing) 6.250 06/01/2018 20,386
9 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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CALIFORNIA Continued
$ 1,000,000 CA EFA (Western University Health Sciences) 6.000% 10/01/2032 $ 1,032,980
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60,000 CA GO 5.100 03/01/2010 60,076
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100,000 CA GO 5.150 10/01/2019 102,507
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25,000 CA GO 5.250 04/01/2018 25,010
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10,000 CA GO 5.250 04/01/2019 10,003
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140,000 CA GO 5.500 04/01/2019 142,262
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30,000 CA GO 5.500 03/01/2020 30,693
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155,000 CA GO 5.500 10/01/2022 157,410
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5,000 CA GO 6.000 05/01/2018 5,149
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40,205,000 CA Golden State Tobacco Securitization Corp. 6.625 06/01/2040 39,072,425
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7,000,000 CA Golden State Tobacco Securitization Corp. RITES i 13.034 r 06/01/2043 6,814,570
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1,130,000 CA Health Facilities Financing Authority
(Marin Home Care) 5.500 08/01/2014 1,150,397
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10,000 CA Health Facilities Financing Authority
(Sisters of Providence) 6.400 10/01/2005 10,133
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15,000 CA Health Facilities Financing Authority
(Small Facilities Loan), Series A 6.700 03/01/2011 15,036
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600,000 CA Health Facilities Financing Authority
(Small Facilities Loan), Series B 7.400 04/01/2014 649,494
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10,000 CA HFA (Multi-Unit Rental Hsg.) 6.875 02/01/2022 10,085
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25,000 CA HFA (Multifamily), Series A 5.900 02/01/2028 25,927
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1,375,000 CA HFA (Single Family Mtg.), Series A-2 6.450 08/01/2025 1,376,334
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185,000 CA HFA, Series B 5.650 08/01/2014 188,913
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795,000 CA HFA, Series B-1 5.600 08/01/2017 834,257
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50,000 CA HFA, Series D 6.400 08/01/2025 51,293
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25,000 CA HFA, Series F 6.100 08/01/2015 25,867
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50,000 CA Pollution Control Financing Authority
(Pacific Gas & Electric Corp.) 5.850 12/01/2023 51,162
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210,000 CA Pollution Control Financing Authority
(Pacific Gas & Electric Corp.) 5.850 12/01/2023 214,880
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3,000,000 CA Pollution Control Financing Authority
(Pacific Gas & Electric Corp.) 6.350 06/01/2009 2,994,060
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145,000 CA Pollution Control Financing Authority
(San Diego Gas & Electric Company) 5.850 06/01/2021 148,303
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20,000 CA Public Works (Department of Corrections) 5.375 06/01/2018 20,454
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235,000 CA Public Works (Department of Corrections) 5.375 12/01/2019 240,339
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10,000 CA Public Works (Department of Corrections) 5.500 12/01/2012 10,231
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10,000 CA Public Works (Department of Corrections) 5.500 06/01/2019 10,325
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15,000 CA Public Works (State Universities) 5.500 12/01/2018 15,336
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50,000 CA Public Works (State Universities) 5.500 06/01/2019 51,145
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50,000 CA Public Works (State Universities) 5.500 06/01/2021 51,145
10 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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CALIFORNIA Continued
$ 390,000 CA Public Works (State Universities) 5.500% 06/01/2021 $ 398,927
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40,000 CA Rural Home Mtg. Finance Authority
(Single Family Mtg.), Series B 7.750 09/01/2026 40,457
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680,000 CA Rural Home Mtg. Finance Authority
(Single Family Mtg.), Series D 6.700 05/01/2029 706,595
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3,000,000 CA Statewide CDA (Aspire Public Schools) 7.250 08/01/2032 3,012,240
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265,000 CA Statewide CDA (CA Odd Fellow Hsg.) 5.500 10/01/2023 266,635
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865,000 CA Statewide CDA (Citrus Gardens Apartments) 6.500 07/01/2032 840,944
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1,440,000 CA Statewide CDA (Citrus Gardens Apartments) 9.000 07/01/2032 1,398,254
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7,250,000 CA Statewide CDA (East Campus Apartments) 5.625 08/01/2034 7,514,480
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1,495,000 CA Statewide CDA (Quail Ridge Apartments) 6.500 07/01/2032 1,453,424
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2,130,000 CA Statewide CDA (Quail Ridge Apartments) 9.000 07/01/2032 2,068,251
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4,000,000 CA Statewide CDA (Turning Point) 6.500 11/01/2031 4,145,040
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7,800,000 CA Statewide CDA COP
(Cedars-Sinai Medical Center) INFLOS i 9.400 r 11/01/2015 8,125,494
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7,000,000 CA Statewide CDA COP
(Pride Industries/Pride Industries One Obligated Group) 7.250 11/01/2029 7,325,640
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2,000,000 CA Statewide CDA COP (Windward School) 6.900 09/01/2023 2,093,620
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5,000,000 CA Statewide Finance Authority
Tobacco Settlement (TASC) 6.000 05/01/2037 4,482,600
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11,720,000 CA Statewide Finance Authority
Tobacco Settlement (TASC) 6.000 05/01/2043 10,458,459
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30,000,000 CA Statewide Finance Authority
Tobacco Settlement (TASC) 6.000 05/01/2043 26,770,800
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5,935,000 CA Valley Health System COP 6.875 05/15/2023 4,744,795
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75,000 CA Valley Health System, Series A 6.500 05/15/2025 79,016
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2,330,000 Campbell Redevel. Agency Tax Allocation 6.600 10/01/2032 2,542,729
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2,500,000 Capistrano Unified School District Community
Facilities District 5.700 09/01/2020 2,538,125
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6,000,000 Carson Redevel. Agency 6.000 01/01/2035 5,987,100
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25,000 Chino Hills Special Tax 6.200 09/01/2007 25,110
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2,435,000 Colton Community Facilities District Special Tax 7.500 09/01/2020 2,598,559
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330,000 Colton Public Financing Authority, Series B 5.875 08/01/2027 331,412
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815,000 Commerce CDC Tax Allocation 5.750 08/01/2010 874,682
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2,800,000 Commerce CDC Tax Allocation 6.000 08/01/2021 2,867,704
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1,410,000 Commerce Joint Powers Finance Authority
(Community Center), Series A 6.250 10/01/2022 1,475,057
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3,075,000 Contra Costa County Special Tax Community
Facilities District 5.580 08/01/2016 3,164,052
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460,000 Corona (Single Family Mtg.), Series B 6.300 11/01/2028 465,580
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1,500,000 Corona-Norco Unified School District Public
Financing Authority 6.125 09/01/2034 1,524,240
11 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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CALIFORNIA Continued
$ 170,000 Cupertino Union School District GO 5.600% 08/01/2021 $ 175,018
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3,345,000 Davis Public Facilities Finance Authority
(Mace Ranch Area) 6.600 09/01/2025 3,531,015
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3,280,000 East Palo Alto Redevel. Agency Tax Allocation
(University Circle-Gateway) 6.625 10/01/2029 3,536,365
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1,500,000 Eastern Municipal Water District Community
Facilities Special Tax 5.950 09/01/2033 1,514,925
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500,000 Eastern Municipal Water District Community
Facilities Special Tax 6.100 09/01/2033 492,960
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15,000 El Paso De Robles COP 5.400 12/01/2023 15,041
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3,000,000 Elk Grove Special Tax (East Franklin Community) 6.000 08/01/2033 3,062,010
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2,750,000 Encinitas Special Tax Community Facilities
District No. 1, Series A 5.875 09/01/2020 2,815,643
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1,625,000 Folsom Special Tax Community Facilities District No. 10 6.300 09/01/2012 1,742,130
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8,500,000 Folsom Special Tax Community Facilities District No. 10 6.875 09/01/2019 9,143,535
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12,500,000 Foothill Eastern Transportation Corridor Agency Toll Road 0.000 z 01/15/2021 4,803,875
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13,000,000 Foothill Eastern Transportation Corridor Agency Toll Road 0.000 z 01/15/2022 4,664,660
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16,650,000 Foothill Eastern Transportation Corridor Agency Toll Road 0.000 z 01/15/2030 3,617,213
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1,000,000 Foothill Eastern Transportation Corridor Agency Toll Road 5.750 01/15/2040 1,025,300
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3,000,000 Huntington Park Public Financing Authority, Series A 6.200 10/01/2025 3,125,850
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3,020,000 Imperial Beach Public Financing Authority
(Palm Ave. Commercial Redevel.) 6.000 06/01/2033 3,013,507
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2,000,000 Indio Improvement Bond Act of 1915 Assessment
District No. 2003-03 6.125 09/02/2029 1,985,820
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2,530,000 Indio Public Financing Authority 6.100 09/02/2029 2,503,005
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2,500,000 Jurupa Community Facilites District Special Tax 5.875 09/01/2033 2,507,850
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7,000,000 La Verne COP (Bethren Hillcrest Homes) 5.600 02/15/2033 7,247,660
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4,500,000 La Verne COP (Bethren Hillcrest Homes) 6.625 02/15/2025 4,513,770
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5,000,000 Lathrop Special Tax Community Facilities District No. 03-2 7.000 09/01/2033 5,052,900
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2,845,000 Lincoln IBA Public Financing Authority (Twelve Bridges) 6.200 09/02/2025 2,961,474
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25,000 Loma Linda Collateralized Loan (Redlands) 7.375 06/01/2009 25,775
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5,000 Los Angeles County Public Works Financing Authority 5.250 12/01/2016 5,113
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2,375,000 Los Angeles Department of Water & Power RITES i 15.730 r 07/01/2024 2,584,808
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75,000 Los Angeles Harbor Department, Series B 5.375 11/01/2019 79,677
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25,000 Los Angeles Regional Airports Improvement Corp.
(United Airlines) t,u 8.800 11/15/2021 17,875
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345,000 Los Angeles Single Family Mtg.
(Government National Mortgage Assn.
& FNMA Mtg. Backed), Series A 6.875 06/01/2025 345,193
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2,500,000 Los Angeles USD ROLs i 10.220 r 07/01/2015 3,418,025
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2,500,000 Los Angeles USD ROLs i 10.220 r 07/01/2016 3,418,025
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1,500,000 Los Angeles USD ROLs i 10.220 r 07/01/2017 2,050,815
12 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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CALIFORNIA Continued
$ 205,000 M-S-R Public Power Agency (San Juan) 5.900% 07/01/2020 $ 208,188
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665,000 M-S-R Public Power Agency (San Juan) 5.900 07/01/2020 675,042
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40,000 M-S-R Public Power Agency (San Juan) 6.000 07/01/2022 40,740
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25,000 Marysville Hsg. (Lakeside Village) 7.700 07/01/2023 25,039
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20,000 Monterey Joint Powers Financing Authority
(Materials Recovery Facilities) 5.600 03/01/2012 20,478
- ------------------------------------------------------------------------------------------------------------------------------
50,000 Monterey Joint Powers Financing Authority
(Materials Recovery Facilities) 5.600 03/01/2013 51,314
- ------------------------------------------------------------------------------------------------------------------------------
20,000 Monterey Joint Powers Financing Authority
(Materials Recovery Facilities) 5.700 03/01/2016 20,671
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2,000,000 Mountain View Los Altos GO (Union School District) 6.500 05/01/2017 2,304,820
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750,000 Murrieta Valley Unified School District Special Tax 6.200 09/01/2035 765,090
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1,695,000 Murrieta Valley Unified School District Special Tax 6.250 09/01/2034 1,724,476
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1,320,000 Norco Special Tax Community Facilities District No. 97-1 7.100 10/01/2030 1,434,814
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5,100,000 Northern CA Tobacco Securitization Authority (TASC) 5.375 06/01/2041 4,149,462
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2,800,000 Novato, CA Special Tax Community Facilities District No. 1 7.250 08/01/2021 2,915,472
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30,000 Oakland GO 6.000 06/15/2017 30,402
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1,000,000 Orange County Community Facilities District
(Ladera Ranch), Series A 6.250 08/15/2030 1,030,360
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2,250,000 Orange County Community Facilities District
(Ladera Ranch), Series A 6.700 08/15/2029 2,431,463
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2,500,000 Perris Community Facilities District Special Tax
(Chaparral Ridge) 6.250 09/01/2033 2,554,200
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1,250,000 Perris Public Financing Authority, Series A 6.250 09/01/2033 1,277,100
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3,500,000 Pittsburg Redevel. Agency
(Los Medanos Community Devel.) 6.200 08/01/2019 3,724,770
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1,000,000 Placentia USD (Yorba-Linda) 6.000 09/01/2032 1,013,410
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 Pleasant Hill Community Facilities District Special Tax 6.000 09/01/2032 1,019,070
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15,000 Pleasant Hill Redevel. Agency (Residential Mtg.) 5.750 08/01/2011 15,053
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500,000 Pomona (Single Family Mtg.), Series B 7.500 08/01/2023 672,355
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2,500,000 Port Oakland RITES i 10.077 r 11/01/2015 3,071,325
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2,500,000 Port Oakland RITES i 10.327 r 11/01/2017 3,076,400
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2,430,000 Port Oakland RITES i 15.661 r 11/01/2022 2,717,469
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5,025,000 Port Oakland RITES 15.661 r 11/01/2032 5,275,044
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2,660,000 Port Oakland RITES i 17.161 r 11/01/2025 3,057,723
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1,750,000 Poway USD Special Tax 6.125 09/01/2033 1,779,575
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3,000,000 Rancho Cordova Community Facilities District
Special Tax (Sunridge Anatolia) 6.100 09/01/2037 3,021,360
- ------------------------------------------------------------------------------------------------------------------------------
3,000,000 Rancho Cucamonga Community Facilities District 6.500 09/01/2033 3,077,820
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750,000 Redding Electric COP RIBS 10.222 r 06/01/2019 784,553
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3,000,000 Redding Electric COP RIBS 11.539 r 07/08/2022 4,288,740
13 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 1,240,000 Redwood City Special Tax Community Facilities District 6.000% 09/01/2033 $ 1,274,943
- ------------------------------------------------------------------------------------------------------------------------------
20,000 Robla School District GO, Series A 5.900 09/01/2016 20,086
- ------------------------------------------------------------------------------------------------------------------------------
15,000 Rosemead Redevel. Agency 5.500 10/01/2018 15,250
- ------------------------------------------------------------------------------------------------------------------------------
1,500,000 Roseville Woodcreek West Community Facility 6.500 09/01/2015 1,613,280
- ------------------------------------------------------------------------------------------------------------------------------
1,750,000 Roseville Woodcreek West Community Facility 6.700 09/01/2025 1,858,115
- ------------------------------------------------------------------------------------------------------------------------------
10,000 Sacramento City Financing Authority 6.500 11/01/2004 10,042
- ------------------------------------------------------------------------------------------------------------------------------
35,000 Sacramento County Airport 5.750 07/01/2024 35,490
- ------------------------------------------------------------------------------------------------------------------------------
30,000 Sacramento Municipal Utility District 6.000 01/01/2024 30,701
- ------------------------------------------------------------------------------------------------------------------------------
1,750,000 Sacramento Special Tax
(North Natomas Community Facilities) 6.000 09/01/2028 1,785,753
- ------------------------------------------------------------------------------------------------------------------------------
1,500,000 Sacramento Special Tax
(North Natomas Community Facilities) 6.000 09/01/2028 1,523,985
- ------------------------------------------------------------------------------------------------------------------------------
1,250,000 Sacramento Special Tax
(North Natomas Community Facilities) 6.000 09/01/2033 1,268,013
- ------------------------------------------------------------------------------------------------------------------------------
150,000 San Bernardino Joint Powers Finance Authority
(Department of Transportation) 5.500 12/01/2020 162,672
- ------------------------------------------------------------------------------------------------------------------------------
3,750,000 San Diego County COP
(Developmental Service Foundation) 5.500 09/01/2027 3,792,000
- ------------------------------------------------------------------------------------------------------------------------------
50,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 06/01/2018 51,071
- ------------------------------------------------------------------------------------------------------------------------------
315,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 06/01/2018 322,220
- ------------------------------------------------------------------------------------------------------------------------------
40,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 09/01/2018 40,656
- ------------------------------------------------------------------------------------------------------------------------------
25,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 09/01/2018 25,573
- ------------------------------------------------------------------------------------------------------------------------------
30,000 San Diego Sewer, Series A 5.250 05/15/2020 30,677
- ------------------------------------------------------------------------------------------------------------------------------
1,880,000 San Diego USD GO RITES i 15.798 r 07/01/2027 2,111,578
- ------------------------------------------------------------------------------------------------------------------------------
15,000 San Francisco City & County Airports Commission 5.500 05/01/2026 15,716
- ------------------------------------------------------------------------------------------------------------------------------
125,000 San Francisco City & County Airports Commission 5.750 05/01/2020 131,198
- ------------------------------------------------------------------------------------------------------------------------------
15,000 San Francisco City & County Airports Commission 6.000 05/01/2012 15,313
- ------------------------------------------------------------------------------------------------------------------------------
25,000 San Francisco City & County Airports Commission 6.250 05/01/2012 25,786
- ------------------------------------------------------------------------------------------------------------------------------
35,000 San Francisco City & County Airports Commission 6.250 05/01/2020 35,738
- ------------------------------------------------------------------------------------------------------------------------------
100,000 San Francisco City & County Airports Commission,
Series A 6.125 05/01/2013 102,116
- ------------------------------------------------------------------------------------------------------------------------------
500,000 San Francisco City & County Airports Commission,
Series A 6.500 05/01/2024 515,965
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 San Francisco City & County Redevel. Agency
Community Facilities District No. 6 6.125 08/01/2031 1,018,020
- ------------------------------------------------------------------------------------------------------------------------------
500,000 San Francisco City & County Redevel. Agency
Community Facilities District No. 6 6.250 08/01/2033 515,440
- ------------------------------------------------------------------------------------------------------------------------------
55,000 San Francisco City & County Redevel. Financing Authority 5.250 08/01/2017 56,243
14 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 25,000 San Gabriel Valley Schools Financing Authority
(Pomona Unified School District) 5.850% 02/01/2020 $ 25,666
- ------------------------------------------------------------------------------------------------------------------------------
6,490,000 San Jacinto Financing Authority, Tranche A 0.000 q 09/01/2033 6,092,033
- ------------------------------------------------------------------------------------------------------------------------------
50,000 San Jacinto Redevel. Agency 6.250 12/01/2023 51,215
- ------------------------------------------------------------------------------------------------------------------------------
250,000 San Joaquin Hills Transportation Corridor Agency 0.000 q 01/15/2021 201,510
- ------------------------------------------------------------------------------------------------------------------------------
8,000,000 San Joaquin Hills Transportation Corridor Agency 5.000 01/01/2033 7,456,640
- ------------------------------------------------------------------------------------------------------------------------------
100,000 San Joaquin Hills Transportation Corridor Agency 5.250 01/15/2030 104,716
- ------------------------------------------------------------------------------------------------------------------------------
25,000 San Jose Finance Authority, Series B 5.625 11/15/2018 25,326
- ------------------------------------------------------------------------------------------------------------------------------
45,000 San Jose Redevel. Agency 5.750 08/01/2024 46,042
- ------------------------------------------------------------------------------------------------------------------------------
25,000 Santa Ana Financing Authority 6.100 09/01/2013 25,824
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 Santa Ana Financing Authority (Mainplace) 5.600 09/01/2019 1,066,280
- ------------------------------------------------------------------------------------------------------------------------------
100,000 Santa Barbara County COP 5.700 03/01/2011 102,406
- ------------------------------------------------------------------------------------------------------------------------------
1,600,000 Santa Clarita Community Facilities District Special Tax 5.800 11/15/2025 1,612,208
- ------------------------------------------------------------------------------------------------------------------------------
3,700,000 Santa Clarita Community Facilities District Special Tax 5.850 11/15/2032 3,729,193
- ------------------------------------------------------------------------------------------------------------------------------
50,000 Santa Cruz Sewer (Secondary Wastewater Treatment) 5.700 11/01/2023 50,657
- ------------------------------------------------------------------------------------------------------------------------------
4,990,000 Santaluz Special Tax Community Facilities District No. 2 6.375 09/01/2030 5,087,854
- ------------------------------------------------------------------------------------------------------------------------------
25,000 Sonoma County Community Redevel. Agency (Roseland) 7.900 08/01/2013 25,725
- ------------------------------------------------------------------------------------------------------------------------------
50,000 Soquel Creek County Water District 5.375 03/01/2019 51,189
- ------------------------------------------------------------------------------------------------------------------------------
4,500,000 Southern CA Metro Water District RIBS 9.700 r 10/30/2020 4,777,650
- ------------------------------------------------------------------------------------------------------------------------------
185,000 Southern CA Public Power Authority 5.500 07/01/2020 185,187
- ------------------------------------------------------------------------------------------------------------------------------
70,000 Southern CA Public Power Authority 5.500 07/01/2020 70,204
- ------------------------------------------------------------------------------------------------------------------------------
5,000 Southern CA Public Power Authority 5.500 07/01/2020 5,005
- ------------------------------------------------------------------------------------------------------------------------------
30,000 Southern CA Public Power Authority 6.000 07/01/2018 30,044
- ------------------------------------------------------------------------------------------------------------------------------
250,000 Southern CA Public Power Authority 7.000 07/01/2009 256,850
- ------------------------------------------------------------------------------------------------------------------------------
150,000 Southern CA Public Power Authority RIBS 10.347 r 07/01/2012 154,025
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 Southern CA Tobacco Securitization Authority (TASC) 5.500 06/01/2036 891,890
- ------------------------------------------------------------------------------------------------------------------------------
3,750,000 Stockton Community Facilities District (Brookside Estates) 6.200 08/01/2015 3,913,050
- ------------------------------------------------------------------------------------------------------------------------------
135,000 Stockton Public Finance Authority, Series A 5.875 09/02/2016 141,012
- ------------------------------------------------------------------------------------------------------------------------------
3,000,000 Tejon Ranch Public Facilities Finance Authority Special Tax
(Community Facilities District No.1) 7.200 09/01/2030 3,092,220
- ------------------------------------------------------------------------------------------------------------------------------
2,000,000 Temecula Public Financing Authority Community
Facilities District No. 3 6.000 09/01/2033 2,026,780
- ------------------------------------------------------------------------------------------------------------------------------
25,000 Temecula Valley USD GO 6.250 09/01/2013 25,094
- ------------------------------------------------------------------------------------------------------------------------------
30,000 Tracy COP (Community Park & Civic Center) 6.625 03/01/2018 30,052
- ------------------------------------------------------------------------------------------------------------------------------
50,000 University of CA (UCLA Medical Center) 5.500 12/01/2012 51,151
- ------------------------------------------------------------------------------------------------------------------------------
100,000 University of CA (UCLA Medical Center) 5.500 12/01/2020 102,276
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 West Sacramento Special Tax Community Facilities
District No. 16 6.000 09/01/2033 997,870
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 Yucaipa Community Facilities District Special Tax 5.750 09/01/2030 1,000,250
-------------
486,355,379
15 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--12.9%
$ 2,245,000 Puerto Rico HBFA 6.250% 04/01/2029 $ 2,326,157
- ------------------------------------------------------------------------------------------------------------------------------
5,510,000 Puerto Rico ITEMECF (Congeneration Facilities) 6.625 06/01/2026 5,836,963
- ------------------------------------------------------------------------------------------------------------------------------
2,800,000 Puerto Rico ITEMECF (Mennonite General Hospital) 6.500 07/01/2012 2,670,836
- ------------------------------------------------------------------------------------------------------------------------------
21,195,000 Puerto Rico Port Authority (American Airlines), Series A 6.250 06/01/2026 16,639,347
- ------------------------------------------------------------------------------------------------------------------------------
1,205,000 Puerto Rico Port Authority (American Airlines), Series A 6.300 06/01/2023 946,009
- ------------------------------------------------------------------------------------------------------------------------------
500,000 Puerto Rico Port Authority, Series D 7.000 07/01/2014 517,175
- ------------------------------------------------------------------------------------------------------------------------------
27,000,000 V.I. Public Finance Authority (Hovensa Coker) 6.500 07/01/2021 29,208,056
- ------------------------------------------------------------------------------------------------------------------------------
4,515,000 V.I. Public Finance Authority, Series A 6.375 10/01/2019 5,110,754
- ------------------------------------------------------------------------------------------------------------------------------
5,150,000 V.I. Public Finance Authority, Series E 6.000 10/01/2022 5,249,962
-------------
68,505,259
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $536,056,071)--104.3% 554,860,638
- ------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(4.3) (22,816,940)
------------
NET ASSETS--100.0% $532,043,698
============
<FN>
FOOTNOTES TO STATEMENT OF INVESTMENTS
i. Identifies issues considered to be illiquid. See Note 5 of Notes to Financial Statements.
q. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
r. Represents the current interest rate for a variable rate bond known as an
"inverse floater". See Note 1 of Notes to Financial Statements.
t. Non-income-accruing security.
u. Issue is in default. See Note 1 of Notes to Financial Statements.
z. Represents a zero coupon bond.
</FN>
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
GO General Obligation
HBFA Housing Bank and Finance Agency
HFA Housing Finance Agency
IBA Improvement Bond Act 1915
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
UCLA University of California at Los Angeles
USD Unified School District
V.I. United States Virgin Islands
16 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
INDUSTRY CONCENTRATIONS January 31, 2004
DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
INDUSTRY MARKET VALUE PERCENT
- --------------------------------------------------------------------------------
Tobacco Settlements $142,276,813 25.6%
Special Tax 110,672,637 19.8
Special Assessment 46,552,914 8.4
Pollution Control 32,416,996 5.8
Highways/Railways 27,965,947 5.0
Education 22,046,288 4.0
Hospital/Health Care 19,646,732 3.5
Marine/Aviation Facilities 18,672,135 3.4
Airlines 17,603,231 3.2
Higher Education 16,950,105 3.1
Adult Living Facilities 16,589,137 3.0
General Obligation 13,969,181 2.5
Electric Utilities 13,205,227 2.4
Sales Tax Revenue 10,370,758 1.9
Municipal Leases 9,491,176 1.7
Hotels, Restaurants & Leisure 8,046,000 1.5
Not-for-Profit Organization 7,797,509 1.4
Water Utilities 7,584,873 1.4
Single Family Housing 7,048,054 1.3
Multifamily Housing 5,847,699 1.1
Sewer Utilities 107,226 --
------------------------------
Total $554,860,638 100.0%
==============================
- --------------------------------------------------------------------------------
SUMMARY OF RATINGS January 31, 2004 / Unaudited
DISTRIBUTION OF INVESTMENTS BY RATING CATEGORY, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
RATING PERCENT
- -------------------------------------------------------------
AAA 9.4%
AA 1.9
A 5.7
BBB 59.8
BB 1.5
B 0.0
CCC 3.1
CC 0.0
C 0.0
D 0.0
Not Rated 18.6
------
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 Unaudited
- --------------------------------------------------------------------------------
January 31, 2004
- --------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $536,056,071)--see accompanying statement $554,860,638
- --------------------------------------------------------------------------------------
Cash 797,845
- --------------------------------------------------------------------------------------
Receivables and other assets:
Interest 9,357,815
Investments sold 2,091,350
Shares of beneficial interest sold 1,304,538
Other 15,668
-------------
Total assets 568,427,854
- --------------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Notes payable to bank (interest rate 1.8125% at January 31, 2004) 33,600,000
Shares of beneficial interest redeemed 2,124,745
Dividends 341,590
Distribution and service plan fees 109,441
Trustees' compensation 103,278
Shareholder communications 54,502
Investments purchased 25,793
Transfer and shareholder servicing agent fees 18,568
Other 6,239
-------------
Total liabilities 36,384,156
- --------------------------------------------------------------------------------------
NET ASSETS $532,043,698
=============
- --------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Par value of shares of beneficial interest $ 49,311
- --------------------------------------------------------------------------------------
Additional paid-in capital 514,845,778
- --------------------------------------------------------------------------------------
Accumulated net investment income 3,479,980
- --------------------------------------------------------------------------------------
Accumulated net realized loss on investments (5,135,938)
- --------------------------------------------------------------------------------------
Net unrealized appreciation on investments 18,804,567
-------------
NET ASSETS $532,043,698
=============
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
$411,596,171 and 38,148,282 shares of beneficial interest outstanding) $10.79
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price) $11.33
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $88,615,675 and 8,207,956 shares of beneficial interest
outstanding) $10.80
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $31,831,852 and 2,955,255 shares of beneficial interest
outstanding) $10.77
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED JANUARY 31, 2004
- -----------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $19,205,740
- -----------------------------------------------------------------------------------
EXPENSES
Management fees 1,414,509
- -----------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 473,455
Class B 463,989
Class C 145,055
- -----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 92,672
Class B 25,231
Class C 9,155
- -----------------------------------------------------------------------------------
Shareholder communications:
Class A 1,536
Class B 367
Class C 89
- -----------------------------------------------------------------------------------
Interest expense 292,053
- -----------------------------------------------------------------------------------
Custodian fees and expenses 16,226
- -----------------------------------------------------------------------------------
Trustees' compensation 13,840
- -----------------------------------------------------------------------------------
Other 31,278
------------
Total expenses 2,979,455
Less reduction to custodian expenses (574)
Less waiver of management fees (129,746)
Less voluntary waiver of transfer and shareholder servicing
agent fees--Class A (1,899)
Less voluntary waiver of transfer and shareholder servicing
agent fees--Class B (180)
Less voluntary waiver of transfer and shareholder servicing
agent fees--Class C (120)
------------
Net expenses 2,846,936
- -----------------------------------------------------------------------------------
NET INVESTMENT INCOME 16,358,804
- -----------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
Net realized gain on investments 2,132,798
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments 36,086,356
- -----------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $54,577,958
============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
(UNAUDITED) 2003
- ----------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 16,358,804 $ 31,551,526
- ----------------------------------------------------------------------------------------------
Net realized gain 2,132,798 24,391,797
- ----------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 36,086,356 (60,092,630)
-----------------------------
Net increase (decrease) in net assets resulting from operations 54,577,958 (4,149,307)
- ----------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (11,195,642) (22,799,725)
Class B (2,266,300) (5,652,080)
Class C (710,205) (1,298,059)
- ----------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A (4,573,044) 686,685
Class B (19,576,829) (20,852,100)
Class C 1,669,596 4,701,867
- ----------------------------------------------------------------------------------------------
NET ASSETS
Total increase (decrease) 17,925,534 (49,362,719)
- ----------------------------------------------------------------------------------------------
Beginning of period 514,118,164 563,480,883
-----------------------------
End of period (including accumulated net investment income
of $3,479,980 and $1,293,323, respectively) $532,043,698 $514,118,164
=============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF CASHFLOWS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2004
- -----------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase in net assets from operations $ 54,577,958
- -----------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets from
operations to net cash used in operating activities:
Purchase of investment securities (104,700,883)
Proceeds from disposition of investment securities 134,688,675
Decrease in interest receivable 112,981
Decrease in receivable for securities sold 7,967,870
Increase in other assets (11,995)
Decrease in payable for securities purchased (3,813,550)
Decrease in accrued expenses (43,642)
Premium amortization 196,631
Discount amortization (445,845)
Realized gain on securities (2,132,798)
Increase in unrealized appreciation on securities (36,086,356)
--------------
Net cash provided by operating activities 50,309,046
- -----------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of debt 117,100,000
Payments on outstanding debt (130,300,000)
Proceeds from shares sold 41,169,191
Payment on shares redeemed (72,255,840)
Cash distributions paid (5,653,144)
--------------
Net cash used in financing activities (49,939,793)
- -----------------------------------------------------------------------------------
Net increase in cash 369,253
- -----------------------------------------------------------------------------------
Cash, beginning balance 428,592
--------------
Cash, ending balance $ 797,845
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS A (UNAUDITED) 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 9.97 $10.60 $10.49 $10.11 $10.57 $10.92
- --------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .34 .63 .53 .53 .53 .53
Net realized and unrealized gain (loss) .78 (.66) .10 .38 (.46) (.35)
----------------------------------------------------------------
Total from investment operations 1.12 (.03) .63 .91 .07 .18
- --------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.30) (.60) (.52) (.53) (.53) (.53)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.79 $ 9.97 $10.60 $10.49 $10.11 $10.57
================================================================
- --------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 11.34% (0.57)% 6.20% 9.17% 0.86% 1.59%
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $411,596 $385,141 $409,689 $387,388 $270,494 $316,363
- --------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $392,094 $410,237 $398,651 $344,808 $283,025 $314,094
- --------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 6.51% 5.88% 5.09% 5.08% 5.34% 4.79%
Total expenses 0.97% 0.96% 0.86% 4 0.88% 0.91% 4 0.91% 4
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 0.92% N/A 3 N/A 0.87% 4 N/A N/A
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 8% 63% 27% 20% 48% 35%
<FN>
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.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS B (UNAUDITED) 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 9.97 $10.61 $10.50 $10.11 $10.57 $10.92
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .31 .55 .45 .45 .45 .45
Net realized and unrealized gain (loss) .78 (.68) .10 .39 (.45) (.35)
-----------------------------------------------------------------
Total from investment operations 1.09 (.13) .55 .84 -- .10
- ---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.26) (.51) (.44) (.45) (.46) (.45)
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.80 $ 9.97 $10.61 $10.50 $10.11 $10.57
=================================================================
- ---------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 11.02% (1.42)% 5.39% 8.46% 0.10% 0.82%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $88,616 $101,079 $128,857 $137,307 $105,393 $132,763
- ---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $92,014 $118,611 $132,685 $126,060 $113,936 $129,538
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.74% 5.09% 4.32% 4.33% 4.57% 4.03%
Total expenses 1.73% 1.73% 1.62% 4 1.63% 1.67% 4 1.67% 4
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 1.68% N/A 3 N/A 1.62% 4 N/A N/A
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 8% 63% 27% 20% 48% 35%
<FN>
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.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS C (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 9.95 $10.58 $10.48 $10.09 $10.55 $10.91
- ------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .30 .54 .46 .45 .45 .45
Net realized and unrealized gain (loss) .78 (.66) .08 .39 (.45) (.36)
----------------------------------------------------------
Total from investment operations 1.08 (.12) .54 .84 -- .09
- ------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.26) (.51) (.44) (.45) (.46) (.45)
- ------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.77 $ 9.95 $10.58 $10.48 $10.09 $10.55
==========================================================
- ------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 10.94% (1.33)% 5.31% 8.48 % 0.10% 0.73%
- ------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $31,832 $27,898 $24,936 $18,105 $12,659 $16,864
- ------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $28,811 $27,011 $21,775 $14,489 $14,424 $14,672
- ------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.72% 5.12% 4.33% 4.32% 4.58% 4.03%
Total expenses 1.74% 1.73% 1.62% 4 1.63% 1.67% 4 1.67% 4
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 1.69% N/A 3 N/A 1.62% 4 N/A N/A
- ------------------------------------------------------------------------------------------------------
Portfolio turnover rate 8% 63% 27% 20% 48% 35%
<FN>
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.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 with respect to
the Fund in general and exclusive voting rights on matters that affect that
class alone. Earnings, net assets and net asset value per share may differ 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 may be valued
primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. Securities (including restricted
securities) for which market quotations are not readily available are valued at
their fair value. Securities whose values have been materially affected by what
the Manager identifies as a significant event occurring before the Fund's
assets are valued but after the close of their respective foreign exchanges
will be fair valued. 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).
- --------------------------------------------------------------------------------
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.
26 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
Inverse floaters amount to $61,093,924 as of January 31, 2004. Including the
effect of leverage, inverse floaters represent 16.42% of the Fund's total
assets as of January 31, 2004.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. The Fund invests in high-yield securities, which may be
subject to a greater degree of credit risk, market fluctuations and loss of
income and principal, and may be more sensitive to economic conditions than
lower-yielding, higher-rated fixed-income securities. The Fund may acquire
securities in default, and is not obligated to dispose of securities whose
issuers subsequently default. As of January 31, 2004, securities with an
aggregate market value of $17,875, representing less than 0.01% of the Fund's
net assets, were in default.
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.
As of January 31, 2004, the Fund had available for federal income tax
purposes an estimated unused capital loss carryforward of $5,029,415 expiring
by 2009. This estimated capital loss carryforward represents carryforward as of
the end of the last fiscal year, increased for losses deferred under tax
accounting rules to the current fiscal year and is increased or decreased by
capital losses or gains realized in the first six months of the current fiscal
year. During the six months ended January 31, 2004 and the year ended July 31,
2003, the Fund used $2,132,798 and $23,695,023, respectively, of carryforward
to offset capital gains realized.
As of July 31, 2003, the Fund had available for federal income tax purposes
unused capital loss carryforward as follows:
EXPIRING
----------------------
2009 $7,162,213
- --------------------------------------------------------------------------------
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 six months
ended January 31, 2004, the Fund's projected benefit obligations were increase
by $5,754 and payments of $7,869 were made to retired trustees, resulting in an
accumulated liability of $90,439 as of January 31, 2004.
27 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
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- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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
Oppenheimer funds selected by the Trustee. 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.
- --------------------------------------------------------------------------------
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, if applicable,
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:
SIX MONTHS ENDED JANUARY 31, 2004 YEAR ENDED JULY 31, 2003
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------
CLASS A
Sold 3,259,924 $ 33,492,203 8,766,917 $ 91,812,775
Dividends and/or
distributions reinvested 663,353 6,870,975 1,319,683 13,774,616
Redeemed (4,414,504) (44,936,222) (10,095,373) (104,900,706)
--------------------------------------------------------
Net increase (decrease) (491,227) $ (4,573,044) (8,773) $ 686,685
========================================================
28 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
SIX MONTHS ENDED JANUARY 31, 2004 YEAR ENDED JULY 31, 2003
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------
CLASS B
Sold 264,836 $ 2,734,953 1,596,238 $ 16,769,161
Dividends and/or
distributions reinvested 144,425 1,493,542 351,551 3,673,171
Redeemed (2,335,946) (23,805,324) (3,961,809) (41,294,432)
-------------------------------------------------------
Net decrease (1,926,685) $(19,576,829) (2,014,020) $(20,852,100)
=======================================================
- -----------------------------------------------------------------------------------
CLASS C
Sold 539,390 $ 5,555,412 1,603,845 $ 16,628,381
Dividends and/or
distributions reinvested 43,653 451,955 88,937 926,483
Redeemed (431,223) (4,337,771) (1,245,225) (12,852,997)
-------------------------------------------------------
Net increase 151,820 $ 1,669,596 447,557 $ 4,701,867
=======================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended January 31, 2004, were
$50,660,293 and $66,302,822, 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. 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. The
Manager voluntarily agreed to waive a portion of its advisory fee at an annual
rate equal to 0.10% of each class's average daily net assets while the Fund's
trailing one-year performance at the end of the preceding calendar quarter is
in the fifth quintile of the Fund's Lipper peer group. The Manager will
voluntarily waive a portion of its advisory fee at an annual rate equal to
0.05% of each class's average daily net assets while the Fund's trailing
one-year performance at the end of the preceding calendar quarter is in the
fourth quintile of the Fund's Lipper peer group. The foregoing waiver may be
amended or withdrawn by the Manager 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 six months ended January 31, 2004, the
Fund paid $129,040 to OFS for services to the Fund.
29 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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 Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan 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. The Distributor currently uses the fees it receives
from the Fund to pay brokers, dealers and other financial institutions for
personal services and account maintenance services they provide for their
customers who hold Class A shares. Any unreimbursed expenses the Distributor
incurs with respect to Class A shares in any fiscal year cannot be recovered in
subsequent years. Fees incurred by the Fund under the plan are detailed in the
Statement of Operations.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B AND CLASS C SHARES. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares to
compensate the Distributor for its services and costs in distributing these
shares and servicing accounts. 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. If either the Class B or Class C plan is terminated by the
Fund or by the shareholders of a class, the Board of Trustees and its
independent trustees must determine whether the Distributor shall be entitled
to payment from the Fund of all or a portion of the service fee and/or the
asset-based sales charge in respect to shares sold prior to the effective date
of such termination. The Distributor's aggregate uncompensated expenses under
the plan at January 31, 2004 for Class B and Class C shares was $2,500,086 and
$608,468, respectively. Fees incurred by the Fund under the plans are detailed
in the Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption
proceeds prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
30 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
CLASS A CLASS B CLASS C
CLASS A CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- -------------------------------------------------------------------------------
January 31, 2004 $61,930 $12,528 $194,202 $4,974
- --------------------------------------------------------------------------------
5. ILLIQUID SECURITIES
As of January 31, 2004, 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 January
31, 2004 was $45,813,912, which represents 8.61% 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 $540 million, collectively. Interest is charged to
each fund, based on its borrowings, at a rate equal to the Federal Funds Rate
plus 0.75%. The rate of the Federal Funds Rate plus 0.625% was effective from
August 1, 2003 to November 8, 2003; thereafter, the rate is 0.75%. 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.
The Fund had borrowings outstanding of $33,600,000 at January 31, 2004 at an
interest rate of 1.8125%. For the six months ended January 31, 2004, the
average monthly loan balance was $33,180,757 at an average daily interest rate
of 1.721%. The Fund had gross borrowings and gross loan repayments of
$117,100,000 and $130,300,000, respectively, during the six months ended
January 31, 2004. The maximum amount of borrowings outstanding at any month-end
was $46,800,000. The Fund paid commitment fees of $2,169 and interest of
$290,945 during the six months ended January 31, 2004.
31 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
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.
32 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer, principal
accounting officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the 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 applicable to semiannual reports.
ITEM 5. NOT APPLICABLE
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. NOT APPLICABLE
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At a meeting of the Board of Trustees of the registrant held on
February 18, 2004, the Board adopted (1) a policy that, should the Board
determine that a vacancy exists or is likely to exist on the Board, the
Governance Committee of the Board, which is comprised entirely of independent
trustees, shall consider any candidates for Board membership recommended by the
registrant's security holders and (2) a policy that security holders wishing to
submit a nominee for election to the Board may do so by mailing their submission
to the offices of OppenheimerFunds, Inc., Two World Financial Center, 225
Liberty Street - 11th Floor, New York, NY 10281-1008, to the attention of the
Chair of the Governance Committee. Prior to February 18, 2004, the Board did not
have a formalized policy with respect to consideration of security holder
nominees or a procedure by which security holders may make their submissions. In
addition to security holder nominees, the Governance Committee may also consider
nominees recommended by independent Board members or recommended by any other
Board members and is authorized under its Charter, upon Board approval, to
retain an executive search firm to assist in screening potential candidates.
Upon Board approval, the Governance Committee may also obtain legal, financial,
or other external counsel that may be necessary or desirable in the screening
process.
ITEM 10. 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 January 31, 2004,
registrant's principal executive officer and principal financial
officer found registrant's disclosure controls and procedures to
provide reasonable assurances 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 over financial reporting that occurred during the
registrant's last fiscal half-year that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 11. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)