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
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: JULY
Date of reporting period: 07/31/2006
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN INDUSTRIES
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Tobacco Settlement Payments 24.2%
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Special Tax 23.4
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Special Assessment 11.8
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General Obligation 7.7
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Marine/Aviation Facilities 4.7
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Hospital/Health Care 4.5
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Municipal Leases 3.9
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Multifamily Housing 3.6
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Single Family Housing 2.2
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Pollution Control 2.0
Portfolio holdings and allocations are subject to change. Percentages are as of
July 31, 2006, and are based on the total market value of investments.
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CREDIT ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
AAA 19.0%
AA 7.6
A 3.3
BBB 49.3
BB 3.0
B 0.1
CCC 1.9
Not Rated 15.8
Portfolio holdings and allocations are subject to change. Percentages are as of
July 31, 2006, and are dollar-weighted based on the total market value of
investments. As of that date, no securities held by the Fund were rated lower
than CCC. Securities rated by any rating organization are included in the
equivalent Standard & Poor's rating category. The allocation includes rated
securities and those not rated by a national rating organization but to which
the ratings above have been assigned by the Manager for internal purposes as
being comparable, in the Manager's judgment, to securities rated by a rating
agency in the same category.
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11 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
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, 2006, FOLLOWED BY A
GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED
MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. Across the past 12 months, the Fund
performed extremely well for shareholders seeking tax-free income as its yield
compared very favorably to those earned by its competitors and by other fixed
income investments. The Fund's Class A shares produced a distribution yield of
5.16% (without sales charges) as of July 31, 2006. Lipper Analytical Services,
Inc., an independent mutual fund rating service, reported an average
distribution yield of 3.86% among the 122 funds in its California Municipal Debt
Funds category as of the same date. 1 The Fund's holdings represent a wide
variety of industry sectors and credit qualities, and tax-free income generated
by this diverse portfolio made up 100% of the Fund's positive total return for
the period. Strong asset growth fueled the Fund's strategy of building
diversification, and by the end of the report period the number of holdings in
the Fund rose to 554, from 335 a year earlier.
The Fund's income-oriented approach continued to provide significant
benefit to our investors in this report period. In the year ended July 31, 2006,
the Fund's Class A shares generated a total return of 4.74% without sales charge
(-0.24% with sales charge). By comparison, its primary benchmark, the Lehman
Brothers Municipal Bond Index, produced a total return of 2.55% for the
period. 2
In this period, the prices of lower-rated municipal bonds have increased
relative to prices of higher-grade bonds, a condition known as "credit spread
tightening." Concurrently, the difference between yields on shorter- and
longer-term municipal securities has declined. These conditions combined to
create dividend pressure midway through this report period. The monthly
distribution, which had held steady at $0.052 per Class A share for the first
seven months of the report period, was reduced to $0.049 per Class A share on
February 22, 2006, and distributions for other share classes were adjusted
accordingly. In all, distributions per Class A share totaled 60.9 cents for the
fiscal year ended July 31, 2006. Investors should note that dividend reductions
do not change the Fund's net asset value per share and that this dividend
reduction was not the result of any material defaults of bonds in the Fund's
portfolio.
1. Lipper Analytical Services, Inc. Lipper calculations do not include sales
charges which, if included,would reduce results.
2. The Lehman Brothers Municipal Bond Index is an unmanaged index of a broad
range of investment-grade municipal bonds.The index cannot be purchased directly
by investors. Index performance is shown for illustrative purposes only and does
not predict or depict the performance of a fund.
12 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
During this period of generally higher prices of lower-rated and non-rated
municipal securities, the Fund shifted a larger portion of its assets to
higher-quality bonds. For example, as of July 31, 2006, AAA- and AA-rated paper
represented more than one-quarter of the portfolio's market value, up nearly 15%
from the same date last year.
The breadth of California's economic recovery during the past 12 months
has continued to foster optimism at the three major credit ratings agencies,
each of which raised the state's General Obligation debt rating one "notch." At
the end of this report period, the credit rating for California debt was A1
according to Moody's Investors Service and A+ according to both Standard &
Poor's and Fitch Ratings. Among the factors cited in these upgrades were a sharp
rise in tax collections and the state's progress in reducing fiscal imbalances.
During this period, the Fund's holdings in Master Settlement Agreement
("MSA") tobacco-backed bonds, which accounted for 24.2% of Fund investments as
of July 31, 2006, have contributed strongly to the Fund's yield and total return
performance. MSA bonds are backed by the issuing State's (or U.S. territory's)
share of proceeds from a national litigation settlement with tobacco
manufacturers.
The litigation environment in the past 12 months has continued to improve
for the tobacco industry and, by extension, for MSA bonds. On December 15, 2005,
the Illinois Supreme Court reversed a $10.1 billion judgment against Philip
Morris USA that had been awarded by a lower court in 2003. Near the end of the
period the Florida Supreme Court upheld an appellate court's reversal of a $145
billion judgment against cigarette manufacturers in the long-running Engle case.
An action brought by the U.S. government against the tobacco industry is still
pending, but we believe that final resolution of this matter will not carry
negative consequences for the Fund's MSA bonds.
MSA bond prices rose early in the report period amid widespread market
speculation that these bonds might be "pre-refunded" by their issuers. In a
pre-refunding, a municipality issues a new bond whose proceeds are escrowed in
U.S. Government bonds and earmarked to pay off another previously issued--but
not yet callable--municipal bond. When an outstanding bond is pre-refunded, its
price generally rises significantly. During this report period, several
MSA-backed bonds were pre-refunded--including bonds issued by the Northern
California and Southern California tobacco securitization authorities for use in
the City of Sacramento and San Diego County, respectively--and their prices
rose. As a result, these holdings contributed to the Fund's yield and net asset
value for the period. After the pre-refunding event, the Fund sold its holdings
at a gain over their purchase price. The Fund also took strategic advantage of
tax loss carry-forwards to ensure that no capital gain was distributed to
shareholders. Pre-refunding of MSA-backed tobacco
13 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FUND PERFORMANCE DISCUSSION
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bonds provides a particularly good example of how our yield-oriented investment
strategy can result in both yield and price appreciation for individual bonds,
generating attractive total return.
The airline sector continues to have a positive impact on Fund
performance. Airline-backed bonds comprised 1.9% of the Fund's investments as of
July 31, 2006, with the great majority of these holdings backed by payments from
American Airlines. Growing passenger traffic, capacity control and increased
fares have helped to stabilize the financial picture at American Airlines.
Despite increased fuel prices, American posted second-quarter profits, after
years of losses, and many analysts expect this carrier to return to
profitability in 2006. The Fund's holdings in airline sector bonds have been a
positive contributor to total return in this report period.
New Fund holdings have included many municipal bonds issued to finance the
infrastructure of new real estate development projects during this report
period. These bonds, sometimes known as "Special Tax" and "Special Assessment"
bonds, represented more than one-third of the Fund's investments as of July 31,
2006. We believe that their credit structure can be particularly advantageous
for municipal bond investors, as the payments that secure the bonds are on
parity with real estate taxes. We use our own in-house research to identify
bonds that we believe will create value for shareholders, and choose to invest
in bonds for a broad mix of residential, commercial, retail, and office
properties throughout California. We also diversify across time, picking
projects in different stages of development, and this broad diversification
serves to reduce the portfolio's exposure to risk.
During this report period, financial difficulties in the Commonwealth of
Puerto Rico led Moody's Investors Services and Standard & Poor's to issue
downgrades on government-issued bonds. While bonds issued by Puerto Rico
underperformed as prices were weakened by the broader market's reaction to
government overspending and budget deficits, we believe that the government's
more recent decisions to raise taxes and reinforce its financial structure will
ultimately strengthen municipal bonds that the Fund continues to own. As we have
continued to monitor developments in Puerto Rico, we have taken advantage of
market weakness to add to positions in these bonds at favorable prices.
The Fund has reduced holdings in municipal inverse-floating-rate
securities during this report period. These holdings are generally highly
liquid, tax-exempt securities whose interest payments move inversely to
short-term interest rates: stated differently, an increase in short-term
interest rates causes a decline in income from these securities. As the yield
curve flattened and long-term interest rates rose slightly during this period,
these securities offered higher-than-market rates but generated less income than
in previous periods.
14 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
The Fund's diversified portfolio includes a variety of bond types, structures
and maturities, in an effort to mute the effects of any one variety. New
municipal bond issues during this report period offered fewer higher-yielding
municipal bonds, which typically possess a favorable balance of risk and reward
for the Fund. In an effort to minimize overall income volatility in the Fund
across the past 12 months, we continued to invest in select premium-coupon,
callable bonds that may remain outstanding through periods of rising short-term
interest rates.
The "Rochester style" of municipal bond investing is flexible and
responsive to market conditions; our strategies are intended to balance many
different types of risk to reduce exposure to any individual risk. We continue
to comb the market for bonds that offer attractive yields, and to monitor
developing market conditions. Notwithstanding the change in the Fund's dividend
distribution, we believe that shareholders will continue to benefit from highly
competitive yields as market conditions continue to develop. Shareholders should
note that market conditions during this report period did not affect the Fund's
overall investment strategies or cause it to pay any capital gain distribution.
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, 2006. In the case of Class A, Class B and Class C
shares, performance is measured over a ten-year period. The Fund's performance
reflects the deduction of the maximum initial sales charge on Class A shares,
the applicable contingent deferred sales charge on Class B and Class C shares,
and reinvestments of all dividends and capital gains distributions. Past
performance cannot guarantee future results.
The Fund's performance is compared to the performance of the Lehman
Brothers Municipal Bond Index, an unmanaged index of a broad range of investment
grade municipal bonds that is widely regarded as a measure of the performance of
the general municipal bond market. Index performance reflects the reinvestment
of income but does not consider the effect of transaction costs, and none of the
data in the graphs shows the effect of taxes. The Fund's performance reflects
the effects of the Fund's business and operating expenses. While index
comparisons may be useful to provide a benchmark for the Fund's performance, it
must be noted that the Fund's investments are not limited to the investments in
the index.
15 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FUND PERFORMANCE DISCUSSION
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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
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer California
Municipal Fund Lehman Brothers
Date (Class A) Municipal Bond Index
07/31/1996 9,525 10,000
10/31/1996 9,758 10,252
01/31/1997 9,930 10,415
04/30/1997 9,966 10,458
07/31/1997 10,583 11,025
10/31/1997 10,667 11,123
01/31/1998 11,023 11,468
04/30/1998 10,913 11,430
07/31/1998 11,183 11,686
10/31/1998 11,472 12,014
01/31/1999 11,682 12,231
04/30/1999 11,667 12,224
07/31/1999 11,360 12,022
10/31/1999 10,855 11,802
01/31/2000 10,671 11,787
04/30/2000 11,038 12,112
07/31/2000 11,459 12,541
10/31/2000 11,758 12,806
01/31/2001 12,197 13,353
04/30/2001 12,106 13,369
07/31/2001 12,510 13,804
10/31/2001 12,906 14,151
01/31/2002 12,775 14,140
04/30/2002 12,871 14,305
07/31/2002 13,284 14,731
10/31/2002 13,363 14,982
01/31/2003 13,251 15,196
04/30/2003 13,212 15,519
07/31/2003 13,208 15,262
10/31/2003 13,831 15,748
01/31/2004 14,707 16,136
04/30/2004 14,418 15,935
07/31/2004 14,468 16,145
10/31/2004 15,349 16,698
01/31/2005 16,033 16,919
04/30/2005 16,519 17,021
07/31/2005 17,100 17,169
10/31/2005 17,111 17,121
01/31/2006 17,425 17,398
04/30/2006 17,539 17,388
07/31/2006 17,911 17,607
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
7/31/06
1-Year -0.24% 5-Year 6.40% 10-Year 6.00%
16 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
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
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer California
Municipal Fund Lehman Brothers
Date (Class B) Municipal Bond Index
07/31/1996 10,000 10,000
10/31/1996 10,225 10,252
01/31/1997 10,384 10,415
04/30/1997 10,403 10,458
07/31/1997 11,027 11,025
10/31/1997 11,102 11,123
01/31/1998 11,451 11,468
04/30/1998 11,306 11,430
07/31/1998 11,563 11,686
10/31/1998 11,850 12,014
01/31/1999 12,034 12,231
04/30/1999 12,006 12,224
07/31/1999 11,658 12,022
10/31/1999 11,118 11,802
01/31/2000 10,920 11,787
04/30/2000 11,263 12,112
07/31/2000 11,670 12,541
10/31/2000 11,953 12,806
01/31/2001 12,387 13,353
04/30/2001 12,260 13,369
07/31/2001 12,657 13,804
10/31/2001 13,034 14,151
01/31/2002 12,876 14,140
04/30/2002 12,937 14,305
07/31/2002 13,348 14,731
10/31/2002 13,427 14,982
01/31/2003 13,315 15,196
04/30/2003 13,275 15,519
07/31/2003 13,272 15,262
10/31/2003 13,897 15,748
01/31/2004 14,777 16,136
04/30/2004 14,488 15,935
07/31/2004 14,538 16,145
10/31/2004 15,422 16,698
01/31/2005 16,110 16,919
04/30/2005 16,598 17,021
07/31/2005 17,183 17,169
10/31/2005 17,193 17,121
01/31/2006 17,509 17,398
04/30/2006 17,624 17,388
07/31/2006 17,997 17,607
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
7/31/06
1-Year -1.13% 5-Year 6.29% 10-Year 6.05%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 4.75%; FOR CLASS B SHARES, AND THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
SHARES, THE 1% CONTINGENT DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD. BECAUSE
CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER PURCHASE, THE 10-YEAR
RETURN FOR CLASS B USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE
PAGE 19 FOR FURTHER INFORMATION.
17 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FUND PERFORMANCE DISCUSSION
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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
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer California
Municipal Fund Lehman Brothers
Date (Class C) Municipal Bond Index
07/31/1996 10,000 10,000
10/31/1996 10,224 10,252
01/31/1997 10,383 10,415
04/30/1997 10,392 10,458
07/31/1997 11,026 11,025
10/31/1997 11,092 11,123
01/31/1998 11,441 11,468
04/30/1998 11,296 11,430
07/31/1998 11,564 11,686
10/31/1998 11,841 12,014
01/31/1999 12,025 12,231
04/30/1999 11,997 12,224
07/31/1999 11,648 12,022
10/31/1999 11,108 11,802
01/31/2000 10,910 11,787
04/30/2000 11,265 12,112
07/31/2000 11,661 12,541
10/31/2000 11,944 12,806
01/31/2001 12,378 13,353
04/30/2001 12,252 13,369
07/31/2001 12,649 13,804
10/31/2001 13,026 14,151
01/31/2002 12,869 14,140
04/30/2002 12,930 14,305
07/31/2002 13,320 14,731
10/31/2002 13,374 14,982
01/31/2003 13,236 15,196
04/30/2003 13,184 15,519
07/31/2003 13,142 15,262
10/31/2003 13,736 15,748
01/31/2004 14,579 16,136
04/30/2004 14,266 15,935
07/31/2004 14,287 16,145
10/31/2004 15,129 16,698
01/31/2005 15,775 16,919
04/30/2005 16,222 17,021
07/31/2005 16,762 17,169
10/31/2005 16,739 17,121
01/31/2006 17,014 17,398
04/30/2006 17,094 17,388
07/31/2006 17,407 17,607
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
7/31/06
1-Year 2.86% 5-Year 6.59% 10-Year 5.70%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 4.75%; FOR CLASS B SHARES, AND THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
SHARES, THE 1% CONTINGENT DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD. BECAUSE
CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER PURCHASE, THE 10-YEAR
RETURN FOR CLASS B USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE
PAGE 19 FOR FURTHER INFORMATION.
18 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES
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TOTAL RETURNS INCLUDE CHANGES IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS DISTRIBUTIONS IN A HYPOTHETICAL INVESTMENT FOR THE PERIODS SHOWN.
CUMULATIVE TOTAL RETURNS ARE NOT ANNUALIZED. THE FUND'S TOTAL RETURNS SHOWN DO
NOT REFLECT THE DEDUCTION OF INCOME TAXES ON AN INDIVIDUAL'S INVESTMENT. TAXES
MAY REDUCE YOUR ACTUAL INVESTMENT RETURNS ON INCOME OR GAINS PAID BY THE FUND OR
ANY GAINS YOU MAY REALIZE IF YOU SELL YOUR SHARES. THIS ANNUAL REPORT MUST BE
PRECEDED OR ACCOMPANIED BY THE CURRENT PROSPECTUS OF THE OPPENHEIMER CALIFORNIA
MUNICIPAL FUND. BEFORE INVESTING IN ANY OF THE OPPENHEIMER FUNDS, INVESTORS
SHOULD CAREFULLY CONSIDER A FUND'S INVESTMENT OBJECTIVES, RISKS, CHARGES AND
EXPENSES. FUND PROSPECTUSES CONTAIN THIS AND OTHER INFORMATION ABOUT THE FUNDS.
FOR MORE INFORMATION, ASK YOUR FINANCIAL ADVISOR, CALL US AT 1.8000.525.7048, OR
VISIT OUR WEBSITE AT WWW.OPPENHEIMERFUNDS.COM. READ PROSPECTUSES CAREFULLY
BEFORE INVESTING.
THE FUND'S INVESTMENT STRATEGY AND FOCUS CAN CHANGE OVER TIME. THE MENTION OF
SPECIFIC FUND HOLDINGS DOES NOT CONSTITUTE A RECOMMENDATION BY OPPENHEIMERFUNDS,
INC.
CLASS A shares of the Fund were first publicly offered on 11/3/88. 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 10-year 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 1-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.
19 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended July 31, 2006.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. You may use the information on this
line for the class of shares you hold, together with the amount you invested, to
estimate the expense that you paid over the period. Simply divide your account
value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00
= 8.60), then multiply the result by the number in the "actual" line under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the
table provide information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio for each class of shares, and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Fund and other funds. To do so, compare this 5% hypothetical example for
the class of shares you hold with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front-end
or contingent deferred sales charges (loads), or a $12.00 fee imposed annually
on accounts valued at less than $500.00 (subject to exceptions described in
20 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
the Statement of Additional Information). Therefore, the "hypothetical" lines of
the table are useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
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BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(2/1/06) (7/31/06) JULY 31, 2006
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Class A Actual $1,000.00 $1,027.90 $ 4.43
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Class A Hypothetical 1,000.00 1,020.43 4.42
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Class B Actual 1,000.00 1,023.10 8.36
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Class B Hypothetical 1,000.00 1,016.56 8.33
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Class C Actual 1,000.00 1,023.10 8.26
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Class C Hypothetical 1,000.00 1,016.66 8.23
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 181/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended July 31, 2006 are as follows:
CLASS EXPENSE RATIOS
- --------------------------
Class A 0.88%
- --------------------------
Class B 1.66
- --------------------------
Class C 1.64
- --------------------------------------------------------------------------------
21 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS July 31, 2006
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES--100.2%
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA--91.0%
$ 3,025,000 ABAG Finance Authority for NonProfit Corporations
(Channing House) 5.500% 02/15/2029 $ 3,122,193
- ---------------------------------------------------------------------------------------------------------------------------
1,660,000 ABAG Finance Authority for NonProfit Corporations
(S.F. Rincon Hill) 5.250 09/01/2036 1,665,727
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 ABAG Finance Authority for NonProfit Corporations
(Schools of Sacred Heart) 6.450 06/01/2030 1,058,380
- ---------------------------------------------------------------------------------------------------------------------------
90,000 ABAG Finance Authority for NonProfit
Corporations COP 6.000 08/15/2020 91,018
- ---------------------------------------------------------------------------------------------------------------------------
450,000 ABAG Finance Authority for NonProfit Corporations
COP (American Baptist Homes of the West) 5.750 10/01/2017 452,502
- ---------------------------------------------------------------------------------------------------------------------------
450,000 ABAG Finance Authority for NonProfit Corporations
COP (Lytton Gardens) 6.000 02/15/2019 465,242
- ---------------------------------------------------------------------------------------------------------------------------
440,000 ABAG Finance Authority for NonProfit Corporations
COP (O'Connor Woods) 6.200 11/01/2029 470,906
- ---------------------------------------------------------------------------------------------------------------------------
4,300,000 ABAG Finance Authority for NonProfit Corporations
COP (Redwood Senior Homes & Services) 6.125 11/15/2032 4,609,858
- ---------------------------------------------------------------------------------------------------------------------------
180,000 ABAG Improvement Bond Act 1915 (Windmere Ranch) 6.150 09/02/2029 188,255
- ---------------------------------------------------------------------------------------------------------------------------
2,675,000 Adelanto Elementary School District Community
Facilities District No. 1 5.250 09/01/2026 2,669,944
- ---------------------------------------------------------------------------------------------------------------------------
7,310,000 Adelanto Elementary School District Community
Facilities District No. 1 5.350 09/01/2036 7,321,550
- ---------------------------------------------------------------------------------------------------------------------------
1,145,000 Adelanto Elementary School District Community
Facilities District No. 1 5.400 09/01/2036 1,150,977
- ---------------------------------------------------------------------------------------------------------------------------
55,000 Adelanto Improvement Agency, Series B 5.500 12/01/2023 55,309
- ---------------------------------------------------------------------------------------------------------------------------
50,000 Adelanto Public Financing Authority 6.300 09/01/2028 50,595
- ---------------------------------------------------------------------------------------------------------------------------
50,000 Affordable Hsg. Agency (Merced County Hsg. Authority) 6.000 01/01/2023 52,672
- ---------------------------------------------------------------------------------------------------------------------------
5,295,000 Agua Mansa Industrial Growth Assoc. Special Tax 6.500 09/01/2033 5,578,283
- ---------------------------------------------------------------------------------------------------------------------------
1,500,000 Alameda COP 1 5.750 12/01/2021 1,539,480
- ---------------------------------------------------------------------------------------------------------------------------
200,000 Alameda Public Financing Authority 5.450 09/02/2014 204,148
- ---------------------------------------------------------------------------------------------------------------------------
4,000,000 Anaheim Public Financing Authority RITES 2 9.120 3 12/28/2018 4,438,200
- ---------------------------------------------------------------------------------------------------------------------------
25,000 Arcadia Hospital (Methodist Hospital of Southern CA) 6.625 11/15/2022 25,039
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Arvin Community Redevel. Agency 5.000 09/01/2025 497,240
- ---------------------------------------------------------------------------------------------------------------------------
2,435,000 Arvin Community Redevel. Agency 5.125 09/01/2035 2,387,980
- ---------------------------------------------------------------------------------------------------------------------------
2,025,000 Aztec Shops Auxiliary Organization
(San Diego State University) 6.000 09/01/2031 2,125,744
- ---------------------------------------------------------------------------------------------------------------------------
2,500,000 Azusa Special Tax Community Facilities District
(Mountain Cove) 6.000 09/01/2032 2,602,375
- ---------------------------------------------------------------------------------------------------------------------------
615,000 Bakersfield Improvement Bond Act 1915 5.350 09/02/2022 623,026
- ---------------------------------------------------------------------------------------------------------------------------
2,310,000 Bakersfield Improvement Bond Act 1915 5.400 09/02/2025 2,319,309
- ---------------------------------------------------------------------------------------------------------------------------
3,700,000 Beaumont Financing Authority, Series A 5.350 09/01/2036 3,710,656
- ---------------------------------------------------------------------------------------------------------------------------
1,500,000 Beaumont Financing Authority, Series A 5.750 09/01/2034 1,561,050
22 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 1,000,000 Beaumont Financing Authority, Series B 5.350% 09/01/2028 $ 1,030,240
- ---------------------------------------------------------------------------------------------------------------------------
1,490,000 Beaumont Financing Authority, Series B 5.400 09/01/2035 1,521,946
- ---------------------------------------------------------------------------------------------------------------------------
5,000,000 Beaumont Financing Authority, Series B 6.000 09/01/2034 5,295,700
- ---------------------------------------------------------------------------------------------------------------------------
1,500,000 Beaumont Financing Authority, Series B 6.000 09/01/2034 1,596,195
- ---------------------------------------------------------------------------------------------------------------------------
2,340,000 Beaumont Financing Authority, Series C 5.500 09/01/2035 2,377,253
- ---------------------------------------------------------------------------------------------------------------------------
2,875,000 Beaumont Financing Authority, Series D 5.800 09/01/2035 3,000,868
- ---------------------------------------------------------------------------------------------------------------------------
490,000 Berkeley GO 5.625 09/01/2027 498,497
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Blythe Community Facilities District Special Tax
(Hidden Beaches) 5.300 09/01/2035 503,940
- ---------------------------------------------------------------------------------------------------------------------------
30,000 Blythe Redevel. Agency
(Redevel. Project No. 1 Tax Allocation) 5.650 05/01/2029 31,123
- ---------------------------------------------------------------------------------------------------------------------------
1,500,000 Brentwood Infrastructure Financing Authority 4 5.200 09/02/2036 1,505,580
- ---------------------------------------------------------------------------------------------------------------------------
20,000,000 CA County Tobacco Securitization Agency 6.300 5 06/01/2055 794,800
- ---------------------------------------------------------------------------------------------------------------------------
82,110,000 CA County Tobacco Securitization Agency 6.420 5 06/01/2046 6,638,594
- ---------------------------------------------------------------------------------------------------------------------------
71,700,000 CA County Tobacco Securitization Agency 7.000 5 06/01/2055 2,546,784
- ---------------------------------------------------------------------------------------------------------------------------
123,750,000 CA County Tobacco Securitization Agency 7.250 5 06/01/2055 3,888,225
- ---------------------------------------------------------------------------------------------------------------------------
347,900,000 CA County Tobacco Securitization Agency 7.550 5 06/01/2055 9,765,553
- ---------------------------------------------------------------------------------------------------------------------------
409,500,000 CA County Tobacco Securitization Agency 8.250 5 06/01/2055 10,266,165
- ---------------------------------------------------------------------------------------------------------------------------
5,000,000 CA County Tobacco Securitization Agency (TASC) 0.000 6 06/01/2036 4,041,500
- ---------------------------------------------------------------------------------------------------------------------------
25,725,000 CA County Tobacco Securitization Agency (TASC) 0.000 6 06/01/2041 20,793,260
- ---------------------------------------------------------------------------------------------------------------------------
18,000,000 CA County Tobacco Securitization Agency (TASC) 0.000 6 06/01/2046 14,579,820
- ---------------------------------------------------------------------------------------------------------------------------
12,030,000 CA County Tobacco Securitization Agency (TASC) 5.125 06/01/2038 11,991,624
- ---------------------------------------------------------------------------------------------------------------------------
3,725,000 CA County Tobacco Securitization Agency (TASC) 5.125 06/01/2038 3,713,117
- ---------------------------------------------------------------------------------------------------------------------------
11,435,000 CA County Tobacco Securitization Agency (TASC) 5.250 06/01/2045 11,438,087
- ---------------------------------------------------------------------------------------------------------------------------
5,815,000 CA County Tobacco Securitization Agency (TASC) 5.250 06/01/2045 5,816,570
- ---------------------------------------------------------------------------------------------------------------------------
4,375,000 CA County Tobacco Securitization Agency (TASC) 1 5.750 06/01/2029 4,522,175
- ---------------------------------------------------------------------------------------------------------------------------
6,230,000 CA County Tobacco Securitization Agency (TASC) 5.875 06/01/2027 6,478,452
- ---------------------------------------------------------------------------------------------------------------------------
9,125,000 CA County Tobacco Securitization Agency (TASC) 5.875 06/01/2035 9,479,598
- ---------------------------------------------------------------------------------------------------------------------------
1,250,000 CA County Tobacco Securitization Agency (TASC) 1 5.875 06/01/2043 1,298,575
- ---------------------------------------------------------------------------------------------------------------------------
10,500,000 CA County Tobacco Securitization Agency (TASC) 6.000 06/01/2035 10,985,310
- ---------------------------------------------------------------------------------------------------------------------------
21,960,000 CA County Tobacco Securitization Agency (TASC) 6.000 06/01/2042 22,978,505
- ---------------------------------------------------------------------------------------------------------------------------
10,025,000 CA County Tobacco Securitization Agency (TASC) 6.125 06/01/2038 10,552,516
- ---------------------------------------------------------------------------------------------------------------------------
50,000 CA County Tobacco Securitization Agency (TASC) 6.125 06/01/2043 52,631
- ---------------------------------------------------------------------------------------------------------------------------
86,970,000 CA County Tobacco Securitization Agency (TASC) 6.370 5 06/01/2046 7,168,067
- ---------------------------------------------------------------------------------------------------------------------------
65,800,000 CA County Tobacco Securitization Agency (TASC) 6.600 5 06/01/2046 4,738,258
- ---------------------------------------------------------------------------------------------------------------------------
100,000 CA Dept. of Veterans Affairs Home Purchase 5.100 12/01/2019 100,049
- ---------------------------------------------------------------------------------------------------------------------------
75,000 CA Dept. of Veterans Affairs Home Purchase 5.200 12/01/2027 75,032
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 CA Dept. of Veterans Affairs Home Purchase 1 5.350 12/01/2027 1,055,540
- ---------------------------------------------------------------------------------------------------------------------------
55,000 CA Dept. of Veterans Affairs Home Purchase 5.500 12/01/2019 57,343
- ---------------------------------------------------------------------------------------------------------------------------
20,000 CA Dept. of Water Resources (Center Valley) 5.000 12/01/2029 20,194
23 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 25,000 CA Educational Facilities Authority
(Golden Gate University) 5.500% 10/01/2031 $ 25,515
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 CA Educational Facilities Authority
(Western University Health Sciences) 6.000 10/01/2032 1,053,780
- ---------------------------------------------------------------------------------------------------------------------------
45,000 CA GO 5.000 04/01/2022 46,214
- ---------------------------------------------------------------------------------------------------------------------------
500,000 CA GO 5.000 02/01/2023 510,470
- ---------------------------------------------------------------------------------------------------------------------------
130,000 CA GO 5.000 10/01/2023 131,949
- ---------------------------------------------------------------------------------------------------------------------------
100,000 CA GO 5.000 02/01/2024 102,339
- ---------------------------------------------------------------------------------------------------------------------------
155,000 CA GO 5.000 08/01/2024 159,580
- ---------------------------------------------------------------------------------------------------------------------------
310,000 CA GO 5.000 03/01/2028 316,665
- ---------------------------------------------------------------------------------------------------------------------------
10,000 CA GO 5.000 02/01/2029 10,175
- ---------------------------------------------------------------------------------------------------------------------------
200,000 CA GO 5.000 02/01/2032 202,908
- ---------------------------------------------------------------------------------------------------------------------------
30,000 CA GO 5.000 02/01/2032 30,569
- ---------------------------------------------------------------------------------------------------------------------------
15,000 CA GO 5.000 02/01/2033 15,387
- ---------------------------------------------------------------------------------------------------------------------------
5,000 CA GO 5.125 02/01/2027 5,140
- ---------------------------------------------------------------------------------------------------------------------------
20,000 CA GO 5.125 03/01/2031 20,491
- ---------------------------------------------------------------------------------------------------------------------------
250,000 CA GO 5.125 06/01/2031 255,125
- ---------------------------------------------------------------------------------------------------------------------------
100,000 CA GO 5.150 10/01/2019 100,200
- ---------------------------------------------------------------------------------------------------------------------------
40,000 CA GO 5.250 04/01/2034 41,669
- ---------------------------------------------------------------------------------------------------------------------------
25,000 CA GO 5.500 04/01/2019 25,068
- ---------------------------------------------------------------------------------------------------------------------------
255,000 CA GO 5.500 03/01/2020 255,347
- ---------------------------------------------------------------------------------------------------------------------------
5,000 CA GO 5.500 10/01/2022 5,010
- ---------------------------------------------------------------------------------------------------------------------------
200,000 CA GO 6.250 10/01/2019 200,698
- ---------------------------------------------------------------------------------------------------------------------------
10,850,000 CA GO DRIVERS 6.051 3 08/01/2013 11,267,508
- ---------------------------------------------------------------------------------------------------------------------------
12,490,000 CA GO RITES 5.380 3 06/01/2031 13,034,064
- ---------------------------------------------------------------------------------------------------------------------------
4,560,000 CA GO ROLs 6.070 3 02/01/2033 4,713,444
- ---------------------------------------------------------------------------------------------------------------------------
5,425,000 CA GO ROLs 8.440 3 06/01/2031 6,087,067
- ---------------------------------------------------------------------------------------------------------------------------
16,070,000 CA Golden State Tobacco Securitization Corp. 6.250 06/01/2033 17,573,991
- ---------------------------------------------------------------------------------------------------------------------------
38,485,000 CA Golden State Tobacco Securitization Corp. 6.625 06/01/2040 42,947,721
- ---------------------------------------------------------------------------------------------------------------------------
1,555,000 CA Golden State Tobacco Securitization Corp. 6.750 06/01/2039 1,750,464
- ---------------------------------------------------------------------------------------------------------------------------
1,350,000 CA Golden State Tobacco Securitization Corp. 1 7.800 06/01/2042 1,615,154
- ---------------------------------------------------------------------------------------------------------------------------
2,000,000 CA Golden State Tobacco Securitization Corp. 1 7.900 06/01/2042 2,404,500
- ---------------------------------------------------------------------------------------------------------------------------
2,805,000 CA Golden State Tobacco Securitization Corp. (TASC) 5.000 06/01/2045 2,819,726
- ---------------------------------------------------------------------------------------------------------------------------
2,810,000 CA Golden State Tobacco Securitization Corp. (TASC) 7.875 06/01/2042 3,374,220
- ---------------------------------------------------------------------------------------------------------------------------
150,000 CA Golden State Tobacco Securitization Corp. (TASC) 7.875 06/01/2042 180,119
- ---------------------------------------------------------------------------------------------------------------------------
9,250,000 CA Golden State Tobacco Securitization Corp. ROLs 8.440 3 06/01/2035 10,352,785
- ---------------------------------------------------------------------------------------------------------------------------
10,500,000 CA Health Facilities Financing Authority
(Cedars-Sinai Medical Center) 5.000 11/15/2034 10,616,655
- ---------------------------------------------------------------------------------------------------------------------------
30,000 CA Health Facilities Financing Authority
(Pomona Valley Hosptial Medical Center) 5.625 07/01/2019 31,044
24 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 140,000 CA Health Facilities Financing Authority
(Small Facilities Loan), Series B 7.400% 04/01/2014 $ 141,721
- ---------------------------------------------------------------------------------------------------------------------------
25,000 CA Health Facilities Financing Authority
(Stanford Health Care) 5.000 11/15/2028 25,531
- ---------------------------------------------------------------------------------------------------------------------------
25,000 CA HFA (Multifamily Hsg.), Series A 5.900 02/01/2028 25,501
- ---------------------------------------------------------------------------------------------------------------------------
35,000 CA HFA (Multifamily Hsg.), Series B 5.500 08/01/2039 35,668
- ---------------------------------------------------------------------------------------------------------------------------
205,000 CA HFA (Single Family Mtg.), Series A-2 6.450 08/01/2025 207,280
- ---------------------------------------------------------------------------------------------------------------------------
15,000 CA HFA, Series A 5.600 08/01/2011 15,245
- ---------------------------------------------------------------------------------------------------------------------------
70,000 CA HFA, Series B 5.650 08/01/2014 70,072
- ---------------------------------------------------------------------------------------------------------------------------
300,000 CA HFA, Series B 7.125 08/01/2024 302,781
- ---------------------------------------------------------------------------------------------------------------------------
300,000 CA HFA, Series B-1 5.600 08/01/2017 306,777
- ---------------------------------------------------------------------------------------------------------------------------
10,000,000 CA HFA, Series E 5.000 02/01/2024 10,131,300
- ---------------------------------------------------------------------------------------------------------------------------
9,350,000 CA HFA, Series E 5.050 02/01/2026 9,483,144
- ---------------------------------------------------------------------------------------------------------------------------
3,000,000 CA Municipal Finance Authority
(Cancer Center of Santa Barbara) 5.000 06/01/2036 3,054,630
- ---------------------------------------------------------------------------------------------------------------------------
11,500,000 CA Pollution Control Financing Authority
(Browning-Ferris Industries) 6.875 11/01/2027 11,574,290
- ---------------------------------------------------------------------------------------------------------------------------
30,000 CA Pollution Control Financing Authority
(General Motors Corp.) 5.500 04/01/2008 29,790
- ---------------------------------------------------------------------------------------------------------------------------
420,000 CA Pollution Control Financing Authority
(Mobil Oil Corp.) 5.500 12/01/2029 430,492
- ---------------------------------------------------------------------------------------------------------------------------
145,000 CA Pollution Control Financing Authority
(San Diego Gas & Electric Company) 5.850 06/01/2021 145,233
- ---------------------------------------------------------------------------------------------------------------------------
975,000 CA Pollution Control Financing Authority
(San Diego Gas & Electric Company) 5.850 06/01/2021 976,307
- ---------------------------------------------------------------------------------------------------------------------------
3,000,000 CA Pollution Control Financing Authority
(Waste Management) 5.400 04/01/2025 3,114,180
- ---------------------------------------------------------------------------------------------------------------------------
25,000 CA Public Works (Dept. of Corrections) 5.250 06/01/2028 25,977
- ---------------------------------------------------------------------------------------------------------------------------
200,000 CA Public Works (Dept. of General Services) 5.000 12/01/2027 205,390
- ---------------------------------------------------------------------------------------------------------------------------
425,000 CA Public Works (State Universities) 5.500 12/01/2018 425,315
- ---------------------------------------------------------------------------------------------------------------------------
50,000 CA Public Works (State Universities) 5.500 06/01/2019 50,070
- ---------------------------------------------------------------------------------------------------------------------------
50,000 CA Public Works (State Universities) 5.500 06/01/2021 50,069
- ---------------------------------------------------------------------------------------------------------------------------
615,000 CA Public Works (State Universities) 5.500 06/01/2021 615,843
- ---------------------------------------------------------------------------------------------------------------------------
870,000 CA Public Works (State Universities) 5.500 06/01/2021 870,600
- ---------------------------------------------------------------------------------------------------------------------------
535,000 CA Public Works
(Various California Universities) 5.500 06/01/2019 537,274
- ---------------------------------------------------------------------------------------------------------------------------
4,000,000 CA Rural Home Mtg. Finance Authority
(Single Family Mtg.) 1 5.500 08/01/2047 4,242,840
- ---------------------------------------------------------------------------------------------------------------------------
500,000 CA Rural Home Mtg. Finance Authority
(Single Family Mtg.) 5.500 08/01/2047 506,055
- ---------------------------------------------------------------------------------------------------------------------------
30,000 CA Rural Home Mtg. Finance Authority
(Single Family Mtg.), Series D 6.700 05/01/2029 30,566
25 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 100,000 CA Statewide CDA 6.530% 5 09/01/2028 $ 24,115
- ---------------------------------------------------------------------------------------------------------------------------
25,000 CA Statewide CDA 6.625 09/01/2027 25,420
- ---------------------------------------------------------------------------------------------------------------------------
50,000 CA Statewide CDA 6.750 09/01/2037 53,857
- ---------------------------------------------------------------------------------------------------------------------------
100,000 CA Statewide CDA 6.770 5 09/01/2034 15,192
- ---------------------------------------------------------------------------------------------------------------------------
5,400,000 CA Statewide CDA (Berkeley Montessori School) 7.250 10/01/2033 5,901,822
- ---------------------------------------------------------------------------------------------------------------------------
265,000 CA Statewide CDA (CA Odd Fellow Hsg.) 5.500 10/01/2023 265,193
- ---------------------------------------------------------------------------------------------------------------------------
840,000 CA Statewide CDA (Citrus Gardens Apartments) 6.500 07/01/2032 871,189
- ---------------------------------------------------------------------------------------------------------------------------
1,415,000 CA Statewide CDA (Citrus Gardens Apartments) 9.000 07/01/2032 1,415,085
- ---------------------------------------------------------------------------------------------------------------------------
2,290,000 CA Statewide CDA (Clara) 5.050 01/20/2041 2,304,633
- ---------------------------------------------------------------------------------------------------------------------------
1,250,000 CA Statewide CDA (East Tabor Apartments) 6.850 08/20/2036 1,373,650
- ---------------------------------------------------------------------------------------------------------------------------
9,800,000 CA Statewide CDA (East Valley Tourist) 9.250 10/01/2020 10,698,856
- ---------------------------------------------------------------------------------------------------------------------------
5,000,000 CA Statewide CDA (Fairfield Apartments) 7.250 01/01/2035 4,451,900
- ---------------------------------------------------------------------------------------------------------------------------
4,200,000 CA Statewide CDA
(Family House & Housing Foundation-Torrence I) 1 7.000 04/20/2036 4,783,548
- ---------------------------------------------------------------------------------------------------------------------------
5,000,000 CA Statewide CDA (John F. Kennedy University) 6.750 10/01/2033 5,140,650
- ---------------------------------------------------------------------------------------------------------------------------
2,050,000 CA Statewide CDA (Kaiser Permanente) 1 5.300 12/01/2015 2,119,803
- ---------------------------------------------------------------------------------------------------------------------------
2,750,000 CA Statewide CDA (Live Oak School) 6.750 10/01/2030 2,926,935
- ---------------------------------------------------------------------------------------------------------------------------
6,000,000 CA Statewide CDA (Marin Montessori School) 7.000 10/01/2033 6,519,180
- ---------------------------------------------------------------------------------------------------------------------------
6,590,000 CA Statewide CDA (Mountain Shadows Community) 1 5.000 07/01/2031 6,643,577
- ---------------------------------------------------------------------------------------------------------------------------
1,400,000 CA Statewide CDA (Napa Valley Hospice) 7.000 01/01/2034 1,454,992
- ---------------------------------------------------------------------------------------------------------------------------
1,650,000 CA Statewide CDA (Notre Dame de Namur University) 6.500 10/01/2023 1,754,016
- ---------------------------------------------------------------------------------------------------------------------------
1,635,000 CA Statewide CDA (Notre Dame de Namur University) 6.625 10/01/2033 1,737,106
- ---------------------------------------------------------------------------------------------------------------------------
1,445,000 CA Statewide CDA (Quail Ridge Apartments) 6.500 07/01/2032 1,484,882
- ---------------------------------------------------------------------------------------------------------------------------
2,080,000 CA Statewide CDA (Quail Ridge Apartments) 9.000 07/01/2032 2,052,003
- ---------------------------------------------------------------------------------------------------------------------------
475,000 CA Statewide CDA (Rio Bravo) 6.300 12/01/2018 482,348
- ---------------------------------------------------------------------------------------------------------------------------
1,935,000 CA Statewide CDA (Sonoma Country Day School) 6.000 01/01/2029 1,831,303
- ---------------------------------------------------------------------------------------------------------------------------
160,000 CA Statewide CDA (Stonehaven Student Hsg.) 5.875 07/01/2032 170,182
- ---------------------------------------------------------------------------------------------------------------------------
15,000 CA Statewide CDA (Sutter Health Obligated Group) 5.500 08/15/2034 15,874
- ---------------------------------------------------------------------------------------------------------------------------
13,000,000 CA Statewide CDA (Sutter Health) 5.000 11/15/2043 13,084,500
- ---------------------------------------------------------------------------------------------------------------------------
400,000 CA Statewide CDA (Sycamore) 6.000 03/20/2038 430,652
- ---------------------------------------------------------------------------------------------------------------------------
4,000,000 CA Statewide CDA (Turning Point) 6.500 11/01/2031 4,213,360
- ---------------------------------------------------------------------------------------------------------------------------
25,000 CA Statewide CDA COP (Internext Group) 5.375 04/01/2030 25,106
- ---------------------------------------------------------------------------------------------------------------------------
1,940,000 CA Statewide CDA COP (Windward School) 6.900 09/01/2023 1,981,535
- ---------------------------------------------------------------------------------------------------------------------------
9,000,000 CA Statewide CDA Linked PARS & INFLOS 1 5.600 3 10/01/2011 9,540,630
- ---------------------------------------------------------------------------------------------------------------------------
500,000 CA Statewide CDA, Series A 5.200 09/02/2025 509,405
- ---------------------------------------------------------------------------------------------------------------------------
1,900,000 CA Statewide CDA, Series A 5.350 09/02/2035 1,940,964
- ---------------------------------------------------------------------------------------------------------------------------
141,950,000 CA Statewide Financing Authority Tobacco Settlement 6.250 5 06/01/2046 12,342,553
- ---------------------------------------------------------------------------------------------------------------------------
45,175,000 CA Statewide Financing Authority Tobacco Settlement 6.380 5 06/01/2046 3,719,710
- ---------------------------------------------------------------------------------------------------------------------------
220,000,000 CA Statewide Financing Authority Tobacco Settlement 7.880 5 06/01/2055 5,363,600
26 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 5,000,000 CA Statewide Financing Authority Tobacco Settlement
(TASC) 6.000% 05/01/2037 $ 5,228,950
- ---------------------------------------------------------------------------------------------------------------------------
11,745,000 CA Statewide Financing Authority Tobacco Settlement
(TASC) 6.000 05/01/2043 12,282,804
- ---------------------------------------------------------------------------------------------------------------------------
30,000,000 CA Statewide Financing Authority Tobacco Settlement
(TASC) 6.000 05/01/2043 31,373,700
- ---------------------------------------------------------------------------------------------------------------------------
3,720,000 CA Valley Health System COP 6.875 05/15/2023 3,724,910
- ---------------------------------------------------------------------------------------------------------------------------
75,000 CA Valley Health System, Series A 6.500 05/15/2025 76,655
- ---------------------------------------------------------------------------------------------------------------------------
120,000 CA Veterans GO 4.700 12/01/2012 120,025
- ---------------------------------------------------------------------------------------------------------------------------
5,000,000 CA Veterans GO 1 4.700 12/01/2017 5,015,850
- ---------------------------------------------------------------------------------------------------------------------------
2,500,000 CA Veterans GO 5.600 12/01/2032 2,528,125
- ---------------------------------------------------------------------------------------------------------------------------
1,500,000 CA Veterans GO, Series B 5.450 12/01/2017 1,503,420
- ---------------------------------------------------------------------------------------------------------------------------
6,845,000 CA Veterans GO, Series BH 1 5.600 12/01/2032 6,933,848
- ---------------------------------------------------------------------------------------------------------------------------
55,000 CA Veterans GO, Series BP 5.500 12/01/2026 55,033
- ---------------------------------------------------------------------------------------------------------------------------
150,000 CA Veterans GO, Series BR 5.250 12/01/2026 150,054
- ---------------------------------------------------------------------------------------------------------------------------
565,000 CA Veterans GO, Series BT 5.000 12/01/2012 567,079
- ---------------------------------------------------------------------------------------------------------------------------
6,250,000 CA Veterans GO, Series BT 5.375 12/01/2016 6,281,500
- ---------------------------------------------------------------------------------------------------------------------------
12,000,000 CA Veterans GO, Series BZ 5.350 12/01/2021 12,228,480
- ---------------------------------------------------------------------------------------------------------------------------
25,000 CA Water Resource Devel. GO, Series S 5.500 04/01/2009 25,033
- ---------------------------------------------------------------------------------------------------------------------------
2,870,000 Calaveras County Special Tax Community Facilities
District No. 2 7.000 09/01/2026 3,146,955
- ---------------------------------------------------------------------------------------------------------------------------
2,500,000 Calexico Community Facilities District No. 2005-1
Special Tax (Hearthstone) 5.500 09/01/2036 2,527,825
- ---------------------------------------------------------------------------------------------------------------------------
2,325,000 Calexico Community Facilities District No. 2005-1
Special Tax (Hearthstone) 5.550 09/01/2036 2,342,554
- ---------------------------------------------------------------------------------------------------------------------------
2,270,000 Campbell Redevel. Agency Tax Allocation 6.600 10/01/2032 2,416,256
- ---------------------------------------------------------------------------------------------------------------------------
25,000 Carlsbad Improvement Bond Act 1915 5.500 09/02/2028 25,003
- ---------------------------------------------------------------------------------------------------------------------------
1,480,000 Carlsbad Special Tax Community Facilities District No. 3 5.300 09/01/2036 1,467,834
- ---------------------------------------------------------------------------------------------------------------------------
25,000 Carson Improvement Bond Act 1915 6.350 09/02/2023 25,789
- ---------------------------------------------------------------------------------------------------------------------------
1,415,000 Carson Improvement Bond Act 1915 7.375 09/02/2022 1,451,932
- ---------------------------------------------------------------------------------------------------------------------------
6,000,000 Carson Redevel. Agency 6.000 01/01/2035 6,241,440
- ---------------------------------------------------------------------------------------------------------------------------
100,000 Central CA Joint Powers Health Financing Authority
COP (CHCC) 6.000 02/01/2020 104,612
- ---------------------------------------------------------------------------------------------------------------------------
50,000 Central CA Joint Powers Health Financing Authority
COP (CHCC/FCHMC/SHF Obligated Group) 6.000 02/01/2030 52,033
- ---------------------------------------------------------------------------------------------------------------------------
2,190,000 Chino Community Facilities District Special Tax 5.150 09/01/2036 2,171,692
- ---------------------------------------------------------------------------------------------------------------------------
1,200,000 Chino Community Facilities District Special Tax 6.000 09/01/2028 1,264,572
- ---------------------------------------------------------------------------------------------------------------------------
1,340,000 Chino Community Facilities District Special Tax 6.000 09/01/2033 1,405,606
- ---------------------------------------------------------------------------------------------------------------------------
5,000 Chino Valley Unified School District COP 5.000 09/01/2026 5,165
- ---------------------------------------------------------------------------------------------------------------------------
2,790,000 Chowchilla Redevel. Agency 1 5.000 08/01/2037 2,832,017
- ---------------------------------------------------------------------------------------------------------------------------
1,825,000 Chowchilla Redevel. Agency 5.000 08/01/2037 1,852,485
27 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 6,840,000 Chula Vista Redevel. Agency (Bayfront) 7.625% 09/01/2024 $ 6,929,467
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Chula Vista Redevel. Agency (Bayfront) 2 8.250 05/01/2024 510,225
- ---------------------------------------------------------------------------------------------------------------------------
2,670,000 Chula Vista Redevel. Agency (Otay Ranch Village Seven) 5.350 09/01/2036 2,699,957
- ---------------------------------------------------------------------------------------------------------------------------
1,825,000 Coalinga Regional Medical Center COP 5.750 09/01/2024 1,885,097
- ---------------------------------------------------------------------------------------------------------------------------
3,040,000 Coalinga Regional Medical Center COP 6.000 09/01/2034 3,109,616
- ---------------------------------------------------------------------------------------------------------------------------
2,280,000 Colton Community Facilities District Special Tax 7.500 09/01/2020 2,457,407
- ---------------------------------------------------------------------------------------------------------------------------
2,800,000 Commerce Community Devel. Corp. Tax Allocation 6.000 08/01/2021 2,897,132
- ---------------------------------------------------------------------------------------------------------------------------
4,000,000 Corcoran Hospital District, Series A 5.000 08/01/2035 4,074,080
- ---------------------------------------------------------------------------------------------------------------------------
2,005,000 Corona Community Facilities District (Buchanan Street) 5.150 09/01/2036 1,988,238
- ---------------------------------------------------------------------------------------------------------------------------
1,750,000 Corona-Norco Unified School District Community
Facilities District No. 04-1 5.200 09/01/2036 1,748,600
- ---------------------------------------------------------------------------------------------------------------------------
3,335,000 Davis Public Facilities Financing Authority
(Mace Ranch Area) 6.600 09/01/2025 3,476,371
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Downey Community Devel. Commission Tax Allocation
(Downey Redevel.) 5.125 08/01/2028 504,240
- ---------------------------------------------------------------------------------------------------------------------------
8,450,000 Duarte COP (Hope National Medical Center) 5.250 04/01/2031 8,601,424
- ---------------------------------------------------------------------------------------------------------------------------
3,280,000 East Palo Alto Redevel. Agency Tax Allocation
(University Circle-Gateway) 6.625 10/01/2029 3,480,506
- ---------------------------------------------------------------------------------------------------------------------------
400,000 Eastern CA Municipal Water District 5.125 09/01/2035 398,184
- ---------------------------------------------------------------------------------------------------------------------------
525,000 Eastern CA Municipal Water District 5.200 09/01/2036 524,580
- ---------------------------------------------------------------------------------------------------------------------------
3,740,000 Eastern CA Municipal Water District 5.250 09/01/2035 3,765,357
- ---------------------------------------------------------------------------------------------------------------------------
1,205,000 Eastern CA Municipal Water District 5.250 09/01/2036 1,209,314
- ---------------------------------------------------------------------------------------------------------------------------
1,500,000 Eastern CA Municipal Water District
(Crown Valley Village) 5.625 09/01/2034 1,530,270
- ---------------------------------------------------------------------------------------------------------------------------
160,000 Eastern CA Municipal Water District (Serena Hills) 6.000 09/01/2033 163,414
- ---------------------------------------------------------------------------------------------------------------------------
1,725,000 Eastern CA Municipal Water District Improvement
Bond Act 1915 5.500 09/02/2035 1,743,475
- ---------------------------------------------------------------------------------------------------------------------------
4,000,000 El Dorado County Special Tax 5.250 09/01/2035 4,013,800
- ---------------------------------------------------------------------------------------------------------------------------
1,900,000 El Dorado County Special Tax 5.350 09/01/2035 1,919,646
- ---------------------------------------------------------------------------------------------------------------------------
2,000,000 Escondido Joint Powers Financing Authority
(California Center for the Arts) 1 6.000 09/01/2018 2,011,540
- ---------------------------------------------------------------------------------------------------------------------------
700,000 Farmersville Unified School District COP 5.000 08/01/2026 701,659
- ---------------------------------------------------------------------------------------------------------------------------
570,000 Fillmore Redevel. Agency Tax Allocation 4 5.000 05/01/2014 571,590
- ---------------------------------------------------------------------------------------------------------------------------
760,000 Fillmore Redevel. Agency Tax Allocation 4 5.000 05/01/2015 761,277
- ---------------------------------------------------------------------------------------------------------------------------
935,000 Fillmore Redevel. Agency Tax Allocation 4 5.000 05/01/2016 933,139
- ---------------------------------------------------------------------------------------------------------------------------
1,080,000 Fillmore Redevel. Agency Tax Allocation 4 5.000 05/01/2017 1,069,740
- ---------------------------------------------------------------------------------------------------------------------------
1,135,000 Fillmore Redevel. Agency Tax Allocation 4 5.000 05/01/2018 1,125,466
- ---------------------------------------------------------------------------------------------------------------------------
4,000,000 Fillmore Redevel. Agency Tax Allocation 4 5.125 05/01/2021 3,962,960
- ---------------------------------------------------------------------------------------------------------------------------
3,000,000 Fillmore Redevel. Agency Tax Allocation 4 5.300 05/01/2023 2,998,080
- ---------------------------------------------------------------------------------------------------------------------------
13,000,000 Fillmore Redevel. Agency Tax Allocation 4 5.375 05/01/2031 13,008,970
- ---------------------------------------------------------------------------------------------------------------------------
1,625,000 Folsom Special Tax Community Facilities District No. 10 6.300 09/01/2012 1,713,693
28 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 8,500,000 Folsom Special Tax Community Facilities
District No. 10 6.875% 09/01/2019 $ 9,142,515
- ---------------------------------------------------------------------------------------------------------------------------
10,000 Fontana Redevel. Agency (Jurupa Hills) 5.500 10/01/2027 10,269
- ---------------------------------------------------------------------------------------------------------------------------
10,000,000 Foothill Eastern Transportation Corridor Agency
Toll Road 5.880 5 01/15/2030 2,566,200
- ---------------------------------------------------------------------------------------------------------------------------
5,100,000 Freemont Community Facilities District
(Pacific Commons) 5.375 09/01/2036 5,106,987
- ---------------------------------------------------------------------------------------------------------------------------
1,675,000 Hawthorne Community Redevel. Agency Special Tax 2 7.200 10/01/2025 1,706,138
- ---------------------------------------------------------------------------------------------------------------------------
1,180,000 Hawthorne Community Redevel. Agency Special Tax 2 7.200 10/01/2025 1,201,936
- ---------------------------------------------------------------------------------------------------------------------------
1,165,000 Heber Public Utilities District (Heber Meadows) 5.300 09/01/2035 1,174,180
- ---------------------------------------------------------------------------------------------------------------------------
45,000 Hemet Community Facilities District 6.400 09/01/2022 51,710
- ---------------------------------------------------------------------------------------------------------------------------
1,505,000 Hemet Unified School District 5.250 09/01/2035 1,509,786
- ---------------------------------------------------------------------------------------------------------------------------
1,370,000 Hesperia Public Financing Authority, Tranche A 0.000 6 09/01/2035 1,370,027
- ---------------------------------------------------------------------------------------------------------------------------
3,375,000 Hesperia Public Financing Authority, Tranche B 0.000 6 09/01/2035 3,375,068
- ---------------------------------------------------------------------------------------------------------------------------
3,355,000 Hesperia Public Financing Authority, Tranche C 0.000 6 09/01/2035 3,355,067
- ---------------------------------------------------------------------------------------------------------------------------
3,000,000 Huntington Park Public Financing Authority, Series A 2 6.200 10/01/2025 3,093,210
- ---------------------------------------------------------------------------------------------------------------------------
7,000,000 Independent Cities Lease Finance Authority (Caritas) 5.200 08/15/2045 7,102,690
- ---------------------------------------------------------------------------------------------------------------------------
130,000 Independent Cities Lease Finance Authority
(El Granada Mobile Home Park) 6.000 05/15/2034 136,283
- ---------------------------------------------------------------------------------------------------------------------------
3,000,000 Independent Cities Lease Finance Authority
(San Juan Mobile Estates) 5.125 05/15/2041 3,007,770
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Independent Cities Lease Finance Authority
(San Juan Mobile Estates) 5.450 05/15/2026 493,700
- ---------------------------------------------------------------------------------------------------------------------------
1,100,000 Independent Cities Lease Finance Authority
(San Juan Mobile Estates) 5.850 05/15/2041 1,103,872
- ---------------------------------------------------------------------------------------------------------------------------
1,275,000 Indio Community Facilities District (Terra Lago) 5.100 09/01/2030 1,267,070
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 Indio Community Facilities District (Terra Lago) 5.150 09/01/2035 991,760
- ---------------------------------------------------------------------------------------------------------------------------
1,090,000 Indio Community Facilities District (Terra Lago) 5.150 09/01/2035 1,081,018
- ---------------------------------------------------------------------------------------------------------------------------
2,445,000 Indio Community Facilities District Special Tax 5.200 09/01/2027 2,459,450
- ---------------------------------------------------------------------------------------------------------------------------
2,215,000 Indio Community Facilities District Special Tax 5.250 09/01/2027 2,239,587
- ---------------------------------------------------------------------------------------------------------------------------
2,520,000 Indio Community Facilities District Special Tax 5.250 09/01/2036 2,532,247
- ---------------------------------------------------------------------------------------------------------------------------
4,095,000 Indio Community Facilities District Special Tax 5.250 09/01/2036 4,114,902
- ---------------------------------------------------------------------------------------------------------------------------
2,000,000 Indio Improvement Bond Act 1915 Assessment
District No. 2003-03 6.125 09/02/2029 2,105,160
- ---------------------------------------------------------------------------------------------------------------------------
2,820,000 Indio Improvement Bond Act 1915 Assessment
District No. 2004-3 5.500 09/02/2030 2,903,641
- ---------------------------------------------------------------------------------------------------------------------------
2,000,000 Indio Public Financing Authority 6.100 09/02/2029 2,157,220
- ---------------------------------------------------------------------------------------------------------------------------
4,250,000 Indio Redevel. Agency Tax, Series B 6.500 08/15/2034 4,616,393
- ---------------------------------------------------------------------------------------------------------------------------
1,540,000 Jurupa Unified School District 5.450 09/01/2035 1,566,965
- ---------------------------------------------------------------------------------------------------------------------------
3,455,000 Kern County Hsg. Authority (Pioneer Pines) 6.150 10/20/2043 3,769,440
- ---------------------------------------------------------------------------------------------------------------------------
4,500,000 La Verne COP (Bethren Hillcrest Homes) 6.625 02/15/2025 4,892,535
29 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 2,020,000 Lake Elsinore Community Facilities
District No. 2006-2 Special Tax (Viscaya) 5.400% 09/01/2036 $ 2,038,988
- ---------------------------------------------------------------------------------------------------------------------------
1,710,000 Lake Elsinore Public Financing Authority, Series F 7.100 09/01/2020 1,792,781
- ---------------------------------------------------------------------------------------------------------------------------
980,000 Lake Elsinore Special Tax 5.200 09/01/2026 988,644
- ---------------------------------------------------------------------------------------------------------------------------
1,100,000 Lake Elsinore Special Tax 5.350 09/01/2036 1,110,362
- ---------------------------------------------------------------------------------------------------------------------------
1,210,000 Lake Elsinore Special Tax 5.350 09/01/2036 1,213,485
- ---------------------------------------------------------------------------------------------------------------------------
2,000,000 Lake Elsinore Special Tax 5.450 09/01/2036 2,025,320
- ---------------------------------------------------------------------------------------------------------------------------
3,430,000 Lake Elsinore Unified School District 5.350 09/01/2035 3,462,311
- ---------------------------------------------------------------------------------------------------------------------------
1,220,000 Lake Elsinore Unified School District 5.350 09/01/2035 1,231,492
- ---------------------------------------------------------------------------------------------------------------------------
1,240,000 Lake Elsinore Unified School District 5.400 09/01/2035 1,252,797
- ---------------------------------------------------------------------------------------------------------------------------
1,800,000 Lathrop Financing Authority (Water Supply) 6.000 06/01/2035 1,878,102
- ---------------------------------------------------------------------------------------------------------------------------
3,430,000 Lathrop Improvement Bond Act 1915 5.100 09/02/2035 3,376,183
- ---------------------------------------------------------------------------------------------------------------------------
50,000 Lathrop Improvement Bond Act 1915 6.000 09/02/2022 51,520
- ---------------------------------------------------------------------------------------------------------------------------
20,000 Lathrop Improvement Bond Act 1915
(Mossdale Village) 6.125 09/02/2028 20,624
- ---------------------------------------------------------------------------------------------------------------------------
4,500,000 Lathrop Special Tax Community Facilities
District No. 03-2 7.000 09/01/2033 4,653,765
- ---------------------------------------------------------------------------------------------------------------------------
50,000 Lee Lake Water District Community Facilties
District No. 1 (Sycamore Creek) 6.000 09/01/2033 52,994
- ---------------------------------------------------------------------------------------------------------------------------
750,000 Lincoln Special Tax 5.900 09/01/2024 798,480
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 Lincoln Special Tax 5.950 09/01/2028 1,062,250
- ---------------------------------------------------------------------------------------------------------------------------
1,305,000 Lindsay Redevel. Agency 5.000 08/01/2025 1,334,911
- ---------------------------------------------------------------------------------------------------------------------------
2,290,000 Lindsay Redevel. Agency 5.000 08/01/2035 2,327,350
- ---------------------------------------------------------------------------------------------------------------------------
25,000 Loma Linda Collateralized Loan (Redlands) 7.375 06/01/2009 25,733
- ---------------------------------------------------------------------------------------------------------------------------
25,000 Long Beach Bond Finance Authority
(Aquarium of the South Pacific) 5.000 11/01/2026 25,707
- ---------------------------------------------------------------------------------------------------------------------------
10,770,000 Long Beach Bond Finance Authority
(Hsg. & Gas Utility) 5.000 08/01/2035 11,008,879
- ---------------------------------------------------------------------------------------------------------------------------
430,000 Los Alamitos Unified School District COP 5.600 02/01/2022 437,934
- ---------------------------------------------------------------------------------------------------------------------------
1,485,000 Los Angeles Community Redevel. Agency
(Grand Central Square) 1 5.850 12/01/2026 1,485,950
- ---------------------------------------------------------------------------------------------------------------------------
2,720,000 Los Angeles Community Redevel. Agency
(Manchester Social Services) 1 5.000 09/01/2037 2,787,347
- ---------------------------------------------------------------------------------------------------------------------------
315,000 Los Angeles County Public Works Financing Authority 5.250 09/01/2013 321,640
- ---------------------------------------------------------------------------------------------------------------------------
2,375,000 Los Angeles Dept. of Water & Power RITES 6.432 3 07/01/2024 2,504,390
- ---------------------------------------------------------------------------------------------------------------------------
200,000 Los Angeles Dept. of Water & Power, Series A 5.125 07/01/2041 204,866
- ---------------------------------------------------------------------------------------------------------------------------
350,000 Los Angeles Harbor Dept. 1 5.375 11/01/2025 354,564
- ---------------------------------------------------------------------------------------------------------------------------
4,400,000 Los Angeles Harbor Dept. ROLs 8.534 3 08/01/2025 4,920,872
- ---------------------------------------------------------------------------------------------------------------------------
4,625,000 Los Angeles Harbor Dept. ROLs 1 8.537 3 08/01/2026 5,121,170
- ---------------------------------------------------------------------------------------------------------------------------
10,000 Los Angeles Harbor Dept., Series B 5.375 11/01/2019 10,127
- ---------------------------------------------------------------------------------------------------------------------------
5,230,000 Los Angeles Hsg. (Park Plaza) 5.500 01/20/2043 5,436,742
30 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 1,500,000 Los Angeles IDA (Santee Court Parking Facility) 5.000% 12/01/2020 $ 1,499,130
- ---------------------------------------------------------------------------------------------------------------------------
1,100,000 Los Angeles IDA (Santee Court Parking Facility) 5.000 12/01/2027 1,096,348
- ---------------------------------------------------------------------------------------------------------------------------
25,000 Los Angeles Regional Airports Improvement Corp.
(United Airlines) 8 8.800 11/15/2021 23,000
- ---------------------------------------------------------------------------------------------------------------------------
2,500,000 Los Angeles Unified School District ROLs 7.506 3 07/01/2015 2,852,475
- ---------------------------------------------------------------------------------------------------------------------------
2,500,000 Los Angeles Unified School District ROLs 7.506 3 07/01/2016 2,852,475
- ---------------------------------------------------------------------------------------------------------------------------
1,500,000 Los Angeles Unified School District ROLs 7.506 3 07/01/2017 1,711,485
- ---------------------------------------------------------------------------------------------------------------------------
15,000 Los Gatos Union School District 5.000 08/01/2024 15,519
- ---------------------------------------------------------------------------------------------------------------------------
65,000 M-S-R Public Power Agency (San Juan) 6.000 07/01/2022 71,286
- ---------------------------------------------------------------------------------------------------------------------------
4,550,000 M-S-R Public Power Agency (San Juan) ROLs 5.363 3 07/01/2017 4,563,468
- ---------------------------------------------------------------------------------------------------------------------------
135,000 Madera County COP (Valley Children's Hospital) 5.750 03/15/2028 136,455
- ---------------------------------------------------------------------------------------------------------------------------
50,000 Marina Community Facilities District Special Tax 6.250 09/01/2023 51,567
- ---------------------------------------------------------------------------------------------------------------------------
1,375,000 Mendota Joint Powers Financing Authority Wastewater 5.150 07/01/2035 1,363,698
- ---------------------------------------------------------------------------------------------------------------------------
915,000 Menifee Union School District Special Tax 5.200 09/01/2030 918,248
- ---------------------------------------------------------------------------------------------------------------------------
400,000 Menifee Union School District Special Tax 5.200 09/01/2035 399,684
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Menifee Union School District Special Tax 5.250 09/01/2035 501,445
- ---------------------------------------------------------------------------------------------------------------------------
1,010,000 Menifee Union School District Special Tax 5.250 09/01/2036 1,013,212
- ---------------------------------------------------------------------------------------------------------------------------
690,000 Menifee Union School District Special Tax 5.500 09/01/2034 702,303
- ---------------------------------------------------------------------------------------------------------------------------
385,000 Menifee Union School District Special Tax 5.500 09/01/2034 391,865
- ---------------------------------------------------------------------------------------------------------------------------
3,250,000 Merced Irrigation District ROLs 1 9.642 3 09/01/2036 3,984,825
- ---------------------------------------------------------------------------------------------------------------------------
1,785,000 Mission Springs Water District 5.200 09/02/2032 1,787,981
- ---------------------------------------------------------------------------------------------------------------------------
25,000 Mission Viejo Community Devel.
(City Hall Construction/Library) 5.000 05/01/2028 25,512
- ---------------------------------------------------------------------------------------------------------------------------
460,000 Modesto Irrigation District COP 5.300 07/01/2022 460,511
- ---------------------------------------------------------------------------------------------------------------------------
3,000,000 Modesto Special Tax Community Facilities
District No. 4 5.150 09/01/2036 2,974,920
- ---------------------------------------------------------------------------------------------------------------------------
4,250,000 Moorpark Community Facilities District No. 2004-1
(Moorpark Highlands) 5.300 09/01/2038 4,294,455
- ---------------------------------------------------------------------------------------------------------------------------
1,475,000 Moreno Valley Unified School District Community
Facilities District 5.150 09/01/2035 1,462,846
- ---------------------------------------------------------------------------------------------------------------------------
680,000 Moreno Valley Unified School District Community
Facilities District No. 2004-5 5.200 09/01/2036 679,456
- ---------------------------------------------------------------------------------------------------------------------------
875,000 Murrieta Community Facilities District
(Murrieta Fields) 5.250 09/01/2035 874,309
- ---------------------------------------------------------------------------------------------------------------------------
700,000 Murrieta Community Facilities District Special Tax
(Bremerton) 5.625 09/01/2034 730,667
- ---------------------------------------------------------------------------------------------------------------------------
1,810,000 Murrieta Community Facilities District Special Tax
(Creekside Village) 5.200 09/01/2035 1,808,570
- ---------------------------------------------------------------------------------------------------------------------------
240,000 Murrieta Community Facilities District Special Tax
(Meadowlane/Amberwalk) 5.125 09/01/2035 237,127
- ---------------------------------------------------------------------------------------------------------------------------
2,500,000 Murrieta Community Facilities District Special Tax
(Murrieta Springs) 5.500 09/01/2034 2,533,550
31 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 25,000 Murrieta Valley Unified School District Special Tax 5.250% 09/01/2037 $ 25,072
- ---------------------------------------------------------------------------------------------------------------------------
370,000 Murrieta Valley Unified School District Special Tax 5.375 09/01/2026 373,134
- ---------------------------------------------------------------------------------------------------------------------------
680,000 Murrieta Valley Unified School District Special Tax 5.450 09/01/2038 687,058
- ---------------------------------------------------------------------------------------------------------------------------
1,785,000 Murrieta Valley Unified School District Special Tax 6.000 09/01/2035 1,864,861
- ---------------------------------------------------------------------------------------------------------------------------
25,000 Murrieta Water Public Financing Authority 6.600 10/01/2016 25,093
- ---------------------------------------------------------------------------------------------------------------------------
1,025,000 Northern CA Power Agency (Hydroelectric) 1 5.125 07/01/2023 1,053,054
- ---------------------------------------------------------------------------------------------------------------------------
22,770,000 Northern CA Tobacco Securitization Authority (TASC) 5.500 06/01/2045 23,190,562
- ---------------------------------------------------------------------------------------------------------------------------
157,335,000 Northern CA Tobacco Securitization Authority (TASC) 6.700 5 06/01/2045 12,103,782
- ---------------------------------------------------------------------------------------------------------------------------
3,000,000 Northstar Community Services District 5.550 09/01/2036 3,057,600
- ---------------------------------------------------------------------------------------------------------------------------
4,060,000 Orange Unified School District 5.375 09/01/2036 4,094,632
- ---------------------------------------------------------------------------------------------------------------------------
30,000 Oxnard School District 5.000 08/01/2031 30,658
- ---------------------------------------------------------------------------------------------------------------------------
230,000 Palm Desert Financing Authority 5.650 5 04/01/2018 123,271
- ---------------------------------------------------------------------------------------------------------------------------
1,020,000 Palm Desert Financing Authority 5.650 5 08/01/2018 537,112
- ---------------------------------------------------------------------------------------------------------------------------
265,000 Palm Desert Financing Authority 5.750 5 04/01/2019 132,187
- ---------------------------------------------------------------------------------------------------------------------------
1,165,000 Palm Desert Financing Authority 5.750 5 08/01/2019 570,699
- ---------------------------------------------------------------------------------------------------------------------------
305,000 Palm Desert Financing Authority 5.850 5 04/01/2020 142,258
- ---------------------------------------------------------------------------------------------------------------------------
1,310,000 Palm Desert Financing Authority 5.850 5 08/01/2020 599,915
- ---------------------------------------------------------------------------------------------------------------------------
340,000 Palm Desert Financing Authority 5.950 5 04/01/2021 147,580
- ---------------------------------------------------------------------------------------------------------------------------
1,450,000 Palm Desert Financing Authority 5.950 5 08/01/2021 617,744
- ---------------------------------------------------------------------------------------------------------------------------
380,000 Palm Desert Financing Authority 6.000 5 04/01/2022 154,079
- ---------------------------------------------------------------------------------------------------------------------------
1,605,000 Palm Desert Financing Authority 6.000 5 08/01/2022 638,597
- ---------------------------------------------------------------------------------------------------------------------------
395,000 Palm Desert Financing Authority 6.010 5 04/01/2023 150,862
- ---------------------------------------------------------------------------------------------------------------------------
1,755,000 Palm Desert Financing Authority 6.010 5 08/01/2023 657,739
- ---------------------------------------------------------------------------------------------------------------------------
410,000 Palm Desert Financing Authority 6.020 5 04/01/2024 147,338
- ---------------------------------------------------------------------------------------------------------------------------
1,910,000 Palm Desert Financing Authority 6.020 5 08/01/2024 673,504
- ---------------------------------------------------------------------------------------------------------------------------
430,000 Palm Desert Financing Authority 6.030 5 04/01/2025 145,224
- ---------------------------------------------------------------------------------------------------------------------------
2,070,000 Palm Desert Financing Authority 6.030 5 08/01/2025 685,957
- ---------------------------------------------------------------------------------------------------------------------------
445,000 Palm Desert Financing Authority 6.040 5 04/01/2026 140,994
- ---------------------------------------------------------------------------------------------------------------------------
2,235,000 Palm Desert Financing Authority 6.040 5 08/01/2026 694,727
- ---------------------------------------------------------------------------------------------------------------------------
465,000 Palm Desert Financing Authority 6.050 5 04/01/2027 138,686
- ---------------------------------------------------------------------------------------------------------------------------
1,400,000 Palm Desert Financing Authority 6.050 5 08/01/2027 409,640
- ---------------------------------------------------------------------------------------------------------------------------
480,000 Palm Desert Financing Authority 6.060 5 04/01/2028 134,602
- ---------------------------------------------------------------------------------------------------------------------------
1,415,000 Palm Desert Financing Authority 6.060 5 08/01/2028 389,281
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Palm Desert Financing Authority 6.070 5 04/01/2029 131,810
- ---------------------------------------------------------------------------------------------------------------------------
1,370,000 Palm Desert Financing Authority 6.070 5 08/01/2029 354,296
- ---------------------------------------------------------------------------------------------------------------------------
520,000 Palm Desert Financing Authority 6.080 5 04/01/2030 128,710
- ---------------------------------------------------------------------------------------------------------------------------
1,430,000 Palm Desert Financing Authority 6.080 5 08/01/2030 347,204
- ---------------------------------------------------------------------------------------------------------------------------
540,000 Palm Desert Financing Authority 6.090 5 04/01/2031 125,599
- ---------------------------------------------------------------------------------------------------------------------------
1,495,000 Palm Desert Financing Authority 6.090 5 08/01/2031 341,084
- ---------------------------------------------------------------------------------------------------------------------------
560,000 Palm Desert Financing Authority 6.100 5 04/01/2032 122,489
32 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 1,560,000 Palm Desert Financing Authority 6.100% 5 08/01/2032 $ 334,698
- ---------------------------------------------------------------------------------------------------------------------------
580,000 Palm Desert Financing Authority 6.100 5 04/01/2033 119,463
- ---------------------------------------------------------------------------------------------------------------------------
1,625,000 Palm Desert Financing Authority 6.100 5 08/01/2033 328,315
- ---------------------------------------------------------------------------------------------------------------------------
590,000 Palm Desert Financing Authority 6.100 5 04/01/2034 114,436
- ---------------------------------------------------------------------------------------------------------------------------
1,705,000 Palm Desert Financing Authority 6.100 5 08/01/2034 324,393
- ---------------------------------------------------------------------------------------------------------------------------
2,075,000 Palm Desert Financing Authority 6.100 5 08/01/2035 371,052
- ---------------------------------------------------------------------------------------------------------------------------
2,325,000 Palm Desert Special Tax Community Facilities
District No. 2005-1-A 5.250 09/01/2026 2,358,527
- ---------------------------------------------------------------------------------------------------------------------------
6,000,000 Palm Desert Special Tax Community Facilities
District No. 2005-1-A 5.450 09/01/2032 6,011,220
- ---------------------------------------------------------------------------------------------------------------------------
8,000,000 Palm Desert Special Tax Community Facilities
District No. 2005-1-A 5.500 09/01/2036 8,027,200
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Palm Springs Airport Passenger Facilities
(Palm Springs International Airport) 5.450 07/01/2020 502,065
- ---------------------------------------------------------------------------------------------------------------------------
2,685,000 Palm Springs Airport Passenger Facilities
(Palm Springs International Airport) 5.550 07/01/2028 2,697,270
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Palm Springs Improvement Bond Act 1915 5.150 09/02/2030 500,140
- ---------------------------------------------------------------------------------------------------------------------------
100,000 Palmdale Community Facilities District Special Tax 5.400 09/01/2035 101,510
- ---------------------------------------------------------------------------------------------------------------------------
1,390,000 Perris Community Facilities District Special Tax 5.300 09/01/2035 1,400,953
- ---------------------------------------------------------------------------------------------------------------------------
2,115,000 Perris Community Facilities District Special Tax 5.300 09/01/2035 2,128,028
- ---------------------------------------------------------------------------------------------------------------------------
2,085,000 Perris Community Facilities District Special Tax
(Amber Oaks) 6.000 09/01/2034 2,218,711
- ---------------------------------------------------------------------------------------------------------------------------
2,500,000 Perris Community Facilities District Special Tax
(Chaparral Ridge) 6.250 09/01/2033 2,698,575
- ---------------------------------------------------------------------------------------------------------------------------
1,310,000 Perris Community Facilities District Special Tax,
Series A 5.750 09/01/2035 1,362,269
- ---------------------------------------------------------------------------------------------------------------------------
3,605,000 Perris Community Facilities District Special Tax,
Series B 6.000 09/01/2034 3,821,661
- ---------------------------------------------------------------------------------------------------------------------------
4,350,000 Perris Public Financing Authority Tax Allocation 5.350 10/01/2036 4,362,485
- ---------------------------------------------------------------------------------------------------------------------------
1,250,000 Perris Public Financing Authority, Series A 6.250 09/01/2033 1,349,288
- ---------------------------------------------------------------------------------------------------------------------------
95,000 Pittsburg Infrastructure Financing Authority, Series A 5.600 09/02/2024 97,761
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Pomona (Single Family Mtg.), Series B 7.500 08/01/2023 649,825
- ---------------------------------------------------------------------------------------------------------------------------
2,430,000 Port of Oakland RITES 6.397 3 11/01/2022 2,678,249
- ---------------------------------------------------------------------------------------------------------------------------
5,025,000 Port of Oakland RITES 6.397 3 11/01/2032 5,267,607
- ---------------------------------------------------------------------------------------------------------------------------
2,500,000 Port of Oakland RITES 6.989 3 11/01/2015 2,777,500
- ---------------------------------------------------------------------------------------------------------------------------
2,500,000 Port of Oakland RITES 7.239 3 11/01/2017 2,809,700
- ---------------------------------------------------------------------------------------------------------------------------
2,660,000 Port of Oakland RITES 7.897 3 11/01/2025 3,012,610
- ---------------------------------------------------------------------------------------------------------------------------
25,000 Port of Oakland, Series L 1 5.000 11/01/2023 25,584
- ---------------------------------------------------------------------------------------------------------------------------
235,000 Port of Oakland, Series L 1 5.000 11/01/2032 237,836
- ---------------------------------------------------------------------------------------------------------------------------
750,000 Poway Hsg. (Poinsetta Mobile Home Park) 5.000 05/01/2023 753,375
- ---------------------------------------------------------------------------------------------------------------------------
7,500,000 Poway Unified School District Special Tax
Community Facilities District No. 14 5.250 09/01/2036 7,525,875
33 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 5,250,000 Poway Unified School District Special Tax
Community Facilities District No. 14 5.250% 09/01/2036 $ 5,268,113
- ---------------------------------------------------------------------------------------------------------------------------
13,585,000 Rancho Cucamonga Community Facilities
District Special Tax 5.375 09/01/2036 13,657,816
- ---------------------------------------------------------------------------------------------------------------------------
2,400,000 Rancho Cucamonga Community Facilities
District Special Tax 5.375 09/01/2036 2,412,864
- ---------------------------------------------------------------------------------------------------------------------------
20,000 Rancho Santa Fe Community Services
District Special Tax 6.600 09/01/2023 21,184
- ---------------------------------------------------------------------------------------------------------------------------
2,770,000 Redding Electric System COP RIBS 1 9.055 3 07/08/2022 3,763,267
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Rialto Speical Tax Community Facilities
District No. 2006-1 4 5.250 09/01/2026 501,335
- ---------------------------------------------------------------------------------------------------------------------------
1,490,000 Rialto Speical Tax Community Facilities
District No. 2006-1 4 5.350 09/01/2036 1,506,718
- ---------------------------------------------------------------------------------------------------------------------------
25,000 Richgrove School District 6.375 07/01/2018 25,143
- ---------------------------------------------------------------------------------------------------------------------------
5,000,000 Rio Elementary School District 5.200 09/01/2035 4,996,050
- ---------------------------------------------------------------------------------------------------------------------------
100,000 River Islands Public Financing Authority 6.000 09/01/2027 103,591
- ---------------------------------------------------------------------------------------------------------------------------
17,500,000 Riverside County Public Financing Authority 5.000 10/01/2035 17,945,200
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 Riverside Improvement Bond Act 1915
(Hunter Park Assessment District) 5.100 09/02/2026 1,003,090
- ---------------------------------------------------------------------------------------------------------------------------
1,500,000 Riverside Improvement Bond Act 1915
(Hunter Park Assessment District) 5.200 09/02/2036 1,498,800
- ---------------------------------------------------------------------------------------------------------------------------
2,000,000 Riverside Special Tax Community Facilities
District No. 92-1, Series A 5.300 09/01/2034 2,016,220
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 Riverside Unified School District 5.250 09/01/2035 1,003,180
- ---------------------------------------------------------------------------------------------------------------------------
1,535,000 Riverside Unified School District 5.250 09/01/2035 1,540,296
- ---------------------------------------------------------------------------------------------------------------------------
2,000,000 Romoland School District 5.375 09/01/2038 2,015,620
- ---------------------------------------------------------------------------------------------------------------------------
35,000 Sacramento County Airport System, Series B 1 5.750 07/01/2024 35,055
- ---------------------------------------------------------------------------------------------------------------------------
75,000 Sacramento Health Facility
(Center for Aids Research Education and Services) 5.300 01/01/2024 76,515
- ---------------------------------------------------------------------------------------------------------------------------
3,145,000 Sacramento Hsg. Authority ROLs 8.538 3 06/01/2037 3,335,587
- ---------------------------------------------------------------------------------------------------------------------------
5,000 Sacramento Municipal Utility District 5.000 08/15/2028 5,139
- ---------------------------------------------------------------------------------------------------------------------------
125,000 San Bernardino County COP
(Medical Center Financing) 5.500 08/01/2024 125,161
- ---------------------------------------------------------------------------------------------------------------------------
150,000 San Bernardino Joint Powers Financing Authority
(California Dept. of Transportation Lease) 5.500 12/01/2020 153,198
- ---------------------------------------------------------------------------------------------------------------------------
1,850,000 San Bernardino Joint Powers Financing Authority
(Tax Allocation) 2 6.625 04/01/2026 2,006,695
- ---------------------------------------------------------------------------------------------------------------------------
5,000,000 San Bernardino Redevel. (San Sevaine) 5.000 09/01/2035 5,081,950
- ---------------------------------------------------------------------------------------------------------------------------
1,100,000 San Diego County COP 5.700 02/01/2028 1,090,452
- ---------------------------------------------------------------------------------------------------------------------------
3,750,000 San Diego County COP
(Developmental Service Foundation) 5.500 09/01/2027 3,842,213
- ---------------------------------------------------------------------------------------------------------------------------
1,775,000 San Diego County Redevel. Agency (Gillespie Field) 5.400 12/01/2025 1,754,925
34 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 6,645,000 San Diego County Redevel. Agency (Gillespie Field) 5.750% 12/01/2032 $ 6,595,362
- ---------------------------------------------------------------------------------------------------------------------------
35,000 San Diego Hsg. Authority (Park Crest Properties) 5.450 08/20/2040 35,663
- ---------------------------------------------------------------------------------------------------------------------------
35,000 San Diego Improvement Bond Act 1915 6.200 09/02/2033 35,042
- ---------------------------------------------------------------------------------------------------------------------------
490,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 06/01/2018 498,183
- ---------------------------------------------------------------------------------------------------------------------------
50,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 06/01/2018 50,347
- ---------------------------------------------------------------------------------------------------------------------------
140,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 09/01/2018 140,970
- ---------------------------------------------------------------------------------------------------------------------------
325,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 09/01/2018 325,416
- ---------------------------------------------------------------------------------------------------------------------------
15,000 San Diego Public Facilities Financing Authority 5.000 05/15/2029 15,316
- ---------------------------------------------------------------------------------------------------------------------------
35,000 San Diego Public Facilities Financing Authority, Series B 5.000 05/15/2029 35,736
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 San Diego Sewer 1 5.000 05/15/2023 1,000,800
- ---------------------------------------------------------------------------------------------------------------------------
1,540,000 San Diego Sewer, Series A 1 5.000 05/15/2023 1,540,231
- ---------------------------------------------------------------------------------------------------------------------------
2,730,000 San Diego Sewer, Series A 1 5.250 05/15/2020 2,735,023
- ---------------------------------------------------------------------------------------------------------------------------
50,000 San Diego State University Foundation Auxiliary
Organization 5.000 03/01/2032 51,203
- ---------------------------------------------------------------------------------------------------------------------------
1,880,000 San Diego Unified School District GO RITES 6.432 3 07/01/2027 2,323,266
- ---------------------------------------------------------------------------------------------------------------------------
2,445,000 San Diego Unified School District GO RITES 7.436 3 07/01/2023 3,297,718
- ---------------------------------------------------------------------------------------------------------------------------
15,000 San Francisco Bay Area Rapid Transit District 5.000 07/01/2028 15,293
- ---------------------------------------------------------------------------------------------------------------------------
500,000 San Francisco City & County (Golden Gate Park) 5.250 06/15/2017 505,555
- ---------------------------------------------------------------------------------------------------------------------------
15,000 San Francisco City & County Airports Commission 5.000 05/01/2023 15,457
- ---------------------------------------------------------------------------------------------------------------------------
90,000 San Francisco City & County Airports Commission 1 5.000 05/01/2029 90,712
- ---------------------------------------------------------------------------------------------------------------------------
20,000 San Francisco City & County Airports Commission 5.000 05/01/2029 20,158
- ---------------------------------------------------------------------------------------------------------------------------
40,000 San Francisco City & County Airports Commission 1 5.000 05/01/2030 40,443
- ---------------------------------------------------------------------------------------------------------------------------
100,000 San Francisco City & County Airports Commission 1 5.250 05/01/2031 102,203
- ---------------------------------------------------------------------------------------------------------------------------
7,875,000 San Francisco City & County Redevel. Agency
(Ceatrice Polite Apartments) 5.000 07/20/2047 7,733,408
- ---------------------------------------------------------------------------------------------------------------------------
1,500,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.150 08/01/2035 1,487,715
- ---------------------------------------------------------------------------------------------------------------------------
435,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.630 5 08/01/2020 202,145
- ---------------------------------------------------------------------------------------------------------------------------
590,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.750 5 08/01/2022 242,295
- ---------------------------------------------------------------------------------------------------------------------------
615,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.800 5 08/01/2023 237,095
- ---------------------------------------------------------------------------------------------------------------------------
540,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.850 5 08/01/2024 195,410
- ---------------------------------------------------------------------------------------------------------------------------
420,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.900 5 08/01/2025 143,149
35 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 2,745,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.900% 5 08/01/2030 $ 693,442
- ---------------------------------------------------------------------------------------------------------------------------
6,035,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.960 5 08/01/2034 1,190,464
- ---------------------------------------------------------------------------------------------------------------------------
450,000 San Francisco City & County Redevel.
Financing Authority, Series A 5.000 08/01/2017 450,365
- ---------------------------------------------------------------------------------------------------------------------------
6,490,000 San Jacinto Financing Authority, Tranche A 6.600 09/01/2033 6,210,216
- ---------------------------------------------------------------------------------------------------------------------------
6,345,000 San Jacinto Financing Authority, Tranche B 6.600 09/01/2033 5,942,156
- ---------------------------------------------------------------------------------------------------------------------------
6,530,000 San Jacinto Financing Authority, Tranche C 6.600 09/01/2033 5,647,993
- ---------------------------------------------------------------------------------------------------------------------------
500,000 San Jacinto Unified School District Special Tax
Community Facilities District No. 2005-4 5.100 09/01/2036 492,040
- ---------------------------------------------------------------------------------------------------------------------------
35,000 San Joaquin Hills Transportation Corridor Agency 5.250 01/15/2030 35,851
- ---------------------------------------------------------------------------------------------------------------------------
1,290,000 San Jose Multifamily Hsg.
(Almaden Senior Hsg. Partners) 5.350 07/15/2034 1,337,072
- ---------------------------------------------------------------------------------------------------------------------------
1,400,000 San Jose Multifamily Hsg. (Fallen Leaves Apartments) 1 5.150 06/01/2036 1,429,848
- ---------------------------------------------------------------------------------------------------------------------------
25,000 San Jose Redevel. Agency 5.000 08/01/2032 25,430
- ---------------------------------------------------------------------------------------------------------------------------
1,500,000 San Leandro Community Facilities District No. 1
Special Tax 6.400 09/01/2019 1,575,090
- ---------------------------------------------------------------------------------------------------------------------------
6,000,000 San Marcos Special Tax 5.950 09/01/2035 6,220,740
- ---------------------------------------------------------------------------------------------------------------------------
25,000 San Mateo Sewer, Series A 5.000 08/01/2025 25,428
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 Santa Ana Financing Authority (Mainplace) 5.600 09/01/2019 1,064,290
- ---------------------------------------------------------------------------------------------------------------------------
525,000 Santa Clara County Hsg. Authority
(Rivertown Apartments) 6.000 08/01/2041 554,694
- ---------------------------------------------------------------------------------------------------------------------------
350,000 Santa Monica Community College District 5.750 07/01/2020 354,046
- ---------------------------------------------------------------------------------------------------------------------------
3,895,000 Santaluz Special Tax Community Facilities
District No. 2 6.375 09/01/2030 3,977,535
- ---------------------------------------------------------------------------------------------------------------------------
2,000,000 Seal Beach Community Facilities District
(Pacific Gateway Business Center) 5.300 09/01/2036 1,998,400
- ---------------------------------------------------------------------------------------------------------------------------
10,000 Seaside Redevel. Agency Tax Allocation 5.375 08/01/2033 10,312
- ---------------------------------------------------------------------------------------------------------------------------
1,090,000 Shafter Community Devel. Agency 5.400 11/01/2026 1,097,150
- ---------------------------------------------------------------------------------------------------------------------------
3,335,000 Shafter Community Devel. Agency 5.450 11/01/2036 3,346,406
- ---------------------------------------------------------------------------------------------------------------------------
20,000 Sonoma County Community Redevel. Agency
(Roseland) 7.900 08/01/2013 20,337
- ---------------------------------------------------------------------------------------------------------------------------
1,585,000 South El Monte Improvement District (Merged Aera) 5.000 08/01/2030 1,617,968
- ---------------------------------------------------------------------------------------------------------------------------
5,245,000 South El Monte Improvement District (Merged Aera) 5.000 08/01/2035 5,345,075
- ---------------------------------------------------------------------------------------------------------------------------
10,320,000 Southern CA Logistics Airport Authority 5.000 12/01/2035 11,148,902
- ---------------------------------------------------------------------------------------------------------------------------
5,460,000 Southern CA Logistics Airport Authority 1 5.000 12/01/2043 5,566,306
- ---------------------------------------------------------------------------------------------------------------------------
19,335,000 Southern CA Logistics Airport Authority 5.000 12/01/2043 19,711,452
- ---------------------------------------------------------------------------------------------------------------------------
150,000 Southern CA Public Power Authority RIBS 7.559 3 07/01/2012 150,435
- ---------------------------------------------------------------------------------------------------------------------------
97,775,000 Southern CA Tobacco Securitization Authority 7.100 5 06/01/2046 6,249,778
- ---------------------------------------------------------------------------------------------------------------------------
4,340,000 Stanislaus County Redevel. (Keyes Storm Drain) 5.375 08/01/2036 4,376,977
36 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 1,450,000 Stockton Public Financing Authority, Series A 5.000% 09/01/2022 $ 1,493,370
- ---------------------------------------------------------------------------------------------------------------------------
1,450,000 Stockton Public Financing Authority, Series A 5.000 09/01/2023 1,491,006
- ---------------------------------------------------------------------------------------------------------------------------
1,325,000 Stockton Public Financing Authority, Series A 5.000 09/01/2024 1,360,325
- ---------------------------------------------------------------------------------------------------------------------------
1,350,000 Stockton Public Financing Authority, Series A 5.000 09/01/2025 1,383,804
- ---------------------------------------------------------------------------------------------------------------------------
3,025,000 Stockton Public Financing Authority, Series A 5.250 09/01/2031 3,158,493
- ---------------------------------------------------------------------------------------------------------------------------
10,000,000 Stockton Public Financing Authority, Series A 5.250 07/01/2037 10,394,900
- ---------------------------------------------------------------------------------------------------------------------------
135,000 Stockton Public Financing Authority, Series A 5.875 09/02/2016 135,293
- ---------------------------------------------------------------------------------------------------------------------------
1,500,000 Tehachapi Redevel. Agency Tax 5.250 12/01/2035 1,568,475
- ---------------------------------------------------------------------------------------------------------------------------
2,250,000 Tejon Ranch Public Facilities Finance Authority
Special Tax (Community Facilities District No. 1) 7.200 09/01/2030 2,322,158
- ---------------------------------------------------------------------------------------------------------------------------
990,000 Temecula Public Financing Authority
(Roripaugh Community Facilities District) 4.900 09/01/2013 970,992
- ---------------------------------------------------------------------------------------------------------------------------
165,000 Temecula Public Financing Authority
(Roripaugh Community Facilities District) 5.000 09/01/2014 164,396
- ---------------------------------------------------------------------------------------------------------------------------
740,000 Temecula Public Financing Authority
(Roripaugh Community Facilities District) 5.050 09/01/2015 733,540
- ---------------------------------------------------------------------------------------------------------------------------
705,000 Temecula Public Financing Authority
(Roripaugh Community Facilities District) 5.100 09/01/2016 699,438
- ---------------------------------------------------------------------------------------------------------------------------
8,000,000 Temecula Public Financing Authority
(Roripaugh Community Facilities District) 5.450 09/01/2026 7,985,040
- ---------------------------------------------------------------------------------------------------------------------------
13,790,000 Temecula Public Financing Authority
(Roripaugh Community Facilities District) 5.500 09/01/2036 13,678,991
- ---------------------------------------------------------------------------------------------------------------------------
2,000,000 Temecula Valley Unified School District 5.500 09/01/2035 2,034,480
- ---------------------------------------------------------------------------------------------------------------------------
1,025,000 Tracy Community Facilities District No. 1
Special Tax (NEI Phase II) 5.700 09/01/2026 1,035,875
- ---------------------------------------------------------------------------------------------------------------------------
3,105,000 Tracy Community Facilities District No. 1
Special Tax (NEI Phase II) 5.750 09/01/2036 3,129,933
- ---------------------------------------------------------------------------------------------------------------------------
1,080,000 Tracy Community Facilities District No. 1
Special Tax (NEI Phase II) 5.750 09/01/2036 1,088,672
- ---------------------------------------------------------------------------------------------------------------------------
1,625,000 Tri-City Hospital District 1 6.000 02/01/2022 1,661,741
- ---------------------------------------------------------------------------------------------------------------------------
4,560,000 Trinity County COP 2 8.500 01/15/2026 4,594,793
- ---------------------------------------------------------------------------------------------------------------------------
50,000 Truckee-Donner Public Utility District Special Tax
Community Facilities District No. 03-1 6.100 09/01/2033 51,512
- ---------------------------------------------------------------------------------------------------------------------------
60,000 Turlock Public Financing Authority 5.450 09/01/2024 61,399
- ---------------------------------------------------------------------------------------------------------------------------
1,600,000 Tustin Community Facilities District Special Tax
(John Lang Homes) 5.500 09/01/2034 1,631,808
- ---------------------------------------------------------------------------------------------------------------------------
6,810,000 University of California, Series E 5.125 09/01/2020 6,966,017
- ---------------------------------------------------------------------------------------------------------------------------
100,000 Upland Community Facilities District Special Tax 5.900 09/01/2024 104,974
- ---------------------------------------------------------------------------------------------------------------------------
2,670,000 Upland Community Facilities District Special Tax
(San Antonio) 6.100 09/01/2034 2,853,776
- ---------------------------------------------------------------------------------------------------------------------------
200,000 Vacaville Improvement Bond Act 1915
(Nut Tree Assessment District) 5.600 09/02/2025 206,032
37 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 250,000 Vacaville Public Financing Authority 5.400% 09/01/2022 $ 251,393
- ---------------------------------------------------------------------------------------------------------------------------
415,000 Val Verde Unified School District Special Tax 5.450 09/01/2036 423,462
- ---------------------------------------------------------------------------------------------------------------------------
850,000 Vallejo COP (Marine World Foundation) 2 7.000 02/01/2017 875,543
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 Vallejo COP (Marine World Foundation) 2 7.200 02/01/2026 1,029,900
- ---------------------------------------------------------------------------------------------------------------------------
30,000 Vallejo Public Financing Authority COP 5.250 07/15/2029 31,219
- ---------------------------------------------------------------------------------------------------------------------------
1,375,000 Valley Sanitation District 5.200 09/02/2030 1,376,746
- ---------------------------------------------------------------------------------------------------------------------------
2,000,000 Ventura County Area Hsg. Authority
(Mira Vista Senior Apartments) 1 5.150 12/01/2031 2,042,460
- ---------------------------------------------------------------------------------------------------------------------------
4,015,000 Ventura County Area Hsg. Authority
(Mira Vista Senior Apartments) 1 5.200 12/01/2039 4,090,602
- ---------------------------------------------------------------------------------------------------------------------------
15,000 Ventura County Superintendent of Schools Office COP 5.000 12/01/2033 15,291
- ---------------------------------------------------------------------------------------------------------------------------
30,000 West Hills Community College District 5.000 08/01/2029 30,509
- ---------------------------------------------------------------------------------------------------------------------------
125,000 West Patterson Financing Authority Special Tax 6.100 09/01/2032 134,314
- ---------------------------------------------------------------------------------------------------------------------------
50,000 Western Hills Water District Special Tax
(Diablo Grande Community Facilities) 6.000 09/01/2024 51,760
- ---------------------------------------------------------------------------------------------------------------------------
4,155,000 Western Hills Water District Special Tax
(Diablo Grande Community Facilities) 6.125 09/01/2031 4,300,467
- ---------------------------------------------------------------------------------------------------------------------------
805,000 Western Hills Water District Special Tax
(Diablo Grande Community Facilities) 6.875 09/01/2031 860,891
- ---------------------------------------------------------------------------------------------------------------------------
1,570,000 Westlands Water District RITES 6.554 3 09/01/2030 1,735,038
- ---------------------------------------------------------------------------------------------------------------------------
2,645,000 Westlands Water District RITES 6.554 3 09/01/2035 2,900,454
- ---------------------------------------------------------------------------------------------------------------------------
4,200,000 Westside Union School District 5.250 09/01/2036 4,214,490
- ---------------------------------------------------------------------------------------------------------------------------
15,000 Yucaipa Redevel. Agency
(Eldorado Palms Mobile Home) 6.000 05/01/2030 15,546
----------------
1,374,037,672
- ---------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--9.2%
3,250,000 Northern Mariana Islands Ports Authority, Series A 5.500 03/15/2031 3,217,338
- ---------------------------------------------------------------------------------------------------------------------------
5,000,000 Puerto Rico Commonwealth GO 5.250 07/01/2022 5,168,050
- ---------------------------------------------------------------------------------------------------------------------------
11,000,000 Puerto Rico Commonwealth GO 5.250 07/01/2023 11,363,110
- ---------------------------------------------------------------------------------------------------------------------------
2,245,000 Puerto Rico HBFA 6.250 04/01/2029 2,275,891
- ---------------------------------------------------------------------------------------------------------------------------
670,000 Puerto Rico HFC (Homeowner Mtg.) 5.200 12/01/2032 682,114
- ---------------------------------------------------------------------------------------------------------------------------
2,000,000 Puerto Rico Highway & Transportation Authority,
Series K 5.000 07/01/2030 2,023,600
- ---------------------------------------------------------------------------------------------------------------------------
5,000,000 Puerto Rico Highway & Transportation Authority,
Series K 5.000 07/01/2035 5,048,150
- ---------------------------------------------------------------------------------------------------------------------------
6,055,000 Puerto Rico ITEMECF (Cogeneration Facilities) 6.625 06/01/2026 6,590,323
- ---------------------------------------------------------------------------------------------------------------------------
2,665,000 Puerto Rico ITEMECF (Mennonite General Hospital) 6.500 07/01/2012 2,678,112
- ---------------------------------------------------------------------------------------------------------------------------
6,900,000 Puerto Rico Municipal Finance Agency, Series A 5.250 08/01/2023 7,178,484
- ---------------------------------------------------------------------------------------------------------------------------
1,500,000 Puerto Rico Municipal Finance Agency, Series A 5.250 08/01/2025 1,557,195
- ---------------------------------------------------------------------------------------------------------------------------
29,415,000 Puerto Rico Port Authority (American Airlines),
Series A 1 6.250 06/01/2026 29,180,857
38 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS Continued
$ 20,000,000 Puerto Rico Public Buildings Authority 5.250% 07/01/2033 $ 20,686,000
- ---------------------------------------------------------------------------------------------------------------------------
27,000,000 V.I. Public Finance Authority (Hovensa Coker) 6.500 07/01/2021 30,290,760
- ---------------------------------------------------------------------------------------------------------------------------
4,515,000 V.I. Public Finance Authority, Series A 6.375 10/01/2019 4,929,883
- ---------------------------------------------------------------------------------------------------------------------------
5,150,000 V.I. Public Finance Authority, Series E 6.000 10/01/2022 5,365,552
----------------
138,235,419
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,459,877,574)--100.2% 1,512,273,091
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(0.2) (2,291,399)
----------------
NET ASSETS--100.0% $ 1,509,981,692
================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. All or a portion of the security has been segregated for collateral to cover
borrowings. See Note 6 of accompanying Notes.
2. Illiquid security. The aggregate value of illiquid securities as of July 31,
2006 was $19,456,640, which represents 1.29% of the Fund's net assets. See Note
5 of accompanying Notes.
3. Represents the current interest rate for a variable rate bond known as an
"inverse floater." See Note 1 of accompanying Notes.
4. When-issued security or forward commitment to be delivered and settled after
July 31, 2006. See Note 1 of accompanying Notes.
5. Zero coupon bond reflects effective yield on the date of purchase.
6. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
7. Represents the current interest rate for a variable or increasing rate
security.
8. Issue is in default. Non-income producing. See Note 1 of accompanying Notes.
TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:
ABAG Assoc. of Bay Area Governments
CDA Communities Devel. Authority
CHCC Community Hospitals of Central California
COP Certificates of Participation
DRIVERS Derivative Inverse Tax Exempt Receipts
FCHMC Fresno Community Hospital & Medical Center
GO General Obligation
HBFA Housing Bank and Finance Agency
HFA Housing Finance Agency
HFC Housing Finance Corp.
IDA Industrial Devel. Agency
INFLOS Inverse Floating Rate Securities
ITEMECF Industrial, Tourist, Educational, Medical and Environmental
Community Facilities
M-S-R Modesto Irrigation District of the City of Santa Clara and the
City of Redding
PARS Periodic Auction Reset Securities
RIBS Residual Interest Bonds
RITES Residual Interest Tax Exempt Security
ROLs Residual Option Longs
SHF Sierra Hospital Foundation
TASC Tobacco Settlement Asset-Backed Bonds
V.I. United States Virgin Islands
39 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INDUSTRY CONCENTRATIONS July 31, 2006
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
INDUSTRY VALUE PERCENT
- --------------------------------------------------------------------------------
Tobacco Settlement Payments $ 366,229,794 24.2%
Special Tax 354,060,224 23.4
Special Assessment 178,341,460 11.8
General Obligation 116,529,802 7.7
Marine/Aviation Facilities 70,363,180 4.7
Hospital/Health Care 67,907,698 4.5
Municipal Leases 58,382,769 3.9
Multifamily Housing 55,125,703 3.6
Single Family Housing 33,354,372 2.2
Pollution Control 30,721,252 2.0
Airlines 29,203,857 1.9
Education 24,432,515 1.6
Higher Education 19,403,679 1.3
Resource Recovery 19,251,938 1.3
Electric Utilities 16,100,677 1.0
Gas Utilities 13,145,335 0.9
Hotels, Restaurants & Leisure 10,698,856 0.7
Water Utilities 10,606,742 0.7
Sales Tax Revenue 10,310,728 0.7
Adult Living Facilities 9,980,001 0.7
Highways/Railways 9,673,801 0.6
Sewer Utilities 5,352,534 0.4
Parking Fee Revenue 2,595,478 0.2
Not-for-Profit Organization 470,906 0.0
Manufacturing, Durable Goods 29,790 0.0
----------------------------------
Total $ 1,512,273,091 100.0%
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
40 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES July 31, 2006
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
ASSETS
- ---------------------------------------------------------------------------------------------------------------
Investments, at value (cost $1,459,877,574)--see accompanying statement of investments $ 1,512,273,091
- ---------------------------------------------------------------------------------------------------------------
Cash 846,810
- ---------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 19,269,151
Investments sold 15,007,991
Shares of beneficial interest sold 13,916,388
Other 29,450
----------------
Total assets 1,561,342,881
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased on a when-issued basis or forward commitment 27,803,819
Payable on borrowings (See Note 6) 20,300,000
Shares of beneficial interest redeemed 1,334,291
Dividends 1,325,229
Distribution and service plan fees 300,289
Trustees' compensation 127,901
Transfer and shareholder servicing agent fees 41,160
Shareholder communications 38,536
Interest expense 31,962
Other 58,002
----------------
Total liabilities 51,361,189
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,509,981,692
================
- ---------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ---------------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 132,072
- ---------------------------------------------------------------------------------------------------------------
Additional paid-in capital 1,460,552,295
- ---------------------------------------------------------------------------------------------------------------
Accumulated net investment income 107,941
- ---------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (3,206,133)
- ---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 52,395,517
----------------
NET ASSETS $ 1,509,981,692
================
41 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES Continued
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ---------------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $1,213,318,778 and
106,095,276 shares of beneficial interest outstanding) $ 11.44
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $ 12.01
- ---------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $64,421,335 and 5,628,906 shares
of beneficial interest outstanding) $ 11.44
- ---------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $232,241,579 and 20,347,769 shares
of beneficial interest outstanding) $ 11.41
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
42 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF OPERATIONS For the Year Ended July 31, 2006
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- ---------------------------------------------------------------------------------------------------------------
Interest $ 64,164,277
- ---------------------------------------------------------------------------------------------------------------
Other income 1,431
----------------
Total investment income 64,165,708
- ---------------------------------------------------------------------------------------------------------------
EXPENSES
- ---------------------------------------------------------------------------------------------------------------
Management fees 5,242,692
- ---------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 2,183,937
Class B 616,055
Class C 1,489,740
- ---------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 283,858
Class B 34,441
Class C 63,505
- ---------------------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 60,291
Class B 7,136
Class C 13,752
- ---------------------------------------------------------------------------------------------------------------
Interest expense 1,582,006
- ---------------------------------------------------------------------------------------------------------------
Trustees' compensation 41,247
- ---------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 129
- ---------------------------------------------------------------------------------------------------------------
Other 227,868
----------------
Total expenses 11,846,657
- ---------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 52,319,051
- ---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS
- ---------------------------------------------------------------------------------------------------------------
Net realized loss on investments (32,854)
- ---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments (1,005,827)
- ---------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 51,280,370
================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
43 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED JULY 31, 2006 2005
- ---------------------------------------------------------------------------------------------------------------
OPERATIONS
- ---------------------------------------------------------------------------------------------------------------
Net investment income $ 52,319,051 $ 31,792,690
- ---------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (32,854) 1,502,281
- ---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (1,005,827) 61,275,811
----------------------------------
Net increase in net assets resulting from operations 51,280,370 94,570,782
- ---------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (47,693,962) (26,908,765)
Class B (2,801,541) (3,003,604)
Class C (6,728,044) (2,082,510)
- ---------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from beneficial interest
transactions:
Class A 596,412,265 168,989,275
Class B 5,353,808 (13,357,770)
Class C 153,276,896 44,091,249
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------------------------
Total increase 749,099,792 262,298,657
- ---------------------------------------------------------------------------------------------------------------
Beginning of period 760,881,900 498,583,243
----------------------------------
End of period (including accumulated net investment income of
$107,941 and $5,012,437, respectively) $1,509,981,692 $ 760,881,900
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
44 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED JULY 31, 2006 2005 2004 2003 2002
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.52 $ 10.31 $ 9.97 $ 10.60 $ 10.49
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .55 1 .62 1 .68 .63 .53
Net realized and unrealized gain (loss) (.02) 1.21 .27 (.66) .10
-------------------------------------------------------------------------
Total from investment operations .53 1.83 .95 (.03) .63
- --------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.61) (.62) (.61) (.60) (.52)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.44 $ 11.52 $ 10.31 $ 9.97 $ 10.60
=========================================================================
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 4.74% 18.20% 9.54% (0.57)% 6.20%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,213,319 $ 621,736 $ 401,491 $ 385,141 $ 409,689
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 901,717 $ 477,934 $ 400,452 $ 410,237 $ 398,651
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 4.85% 5.59% 6.52% 5.88% 5.09%
Total expenses 0.92% 0.92% 1.00% 0.96% 0.86% 4
Expenses after payments and waivers and
reduction to custodian expenses 0.92% 0.92% 0.97% 0.96% 0.86%
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 78% 15% 26% 63% 27%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. 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.
3. Annualized for periods of less than one full year.
4. Excludes interest expense.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
45 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS B YEAR ENDED JULY 31, 2006 2005 2004 2003 2002
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.53 $ 10.31 $ 9.97 $ 10.61 $ 10.50
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .47 1 .54 1 .64 .55 .45
Net realized and unrealized gain (loss) (.04) 1.22 .22 (.68) .10
-------------------------------------------------------------------------
Total from investment operations .43 1.76 .86 (.13) .55
- --------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.52) (.54) (.52) (.51) (.44)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.44 $ 11.53 $ 10.31 $ 9.97 $ 10.61
=========================================================================
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 3.83% 17.40% 8.70% (1.42)% 5.39%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 64,421 $ 59,530 $ 65,991 $ 101,079 $ 128,857
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 61,780 $ 61,244 $ 84,482 $ 118,611 $ 132,685
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 4.11% 4.90% 5.76% 5.09% 4.32%
Total expenses 1.71% 1.69% 1.77% 1.73% 1.62% 4
Expenses after payments and waivers and
reduction to custodian expenses 1.71% 1.69% 1.74% 1.73% 1.62%
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 78% 15% 26% 63% 27%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. 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.
3. Annualized for periods of less than one full year.
4. Excludes interest expense.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
46 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
CLASS C YEAR ENDED JULY 31, 2006 2005 2004 2003 2002
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.50 $ 10.29 $ 9.95 $ 10.58 $ 10.48
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .46 1 .52 1 .60 .54 .46
Net realized and unrealized gain (loss) (.03) 1.23 .26 (.66) .08
-------------------------------------------------------------------------
Total from investment operations .43 1.75 .86 (.12) .54
- --------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.52) (.54) (.52) (.51) (.44)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.41 $ 11.50 $ 10.29 $ 9.95 $ 10.58
=========================================================================
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 3.85% 17.33% 8.71% (1.33)% 5.31%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 232,242 $ 79,616 $ 31,102 $ 27,898 $ 24,936
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 149,437 $ 43,444 $ 30,371 $ 27,011 $ 21,775
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 4.05% 4.73% 5.74% 5.12% 4.33%
Total expenses 1.68% 1.69% 1.78% 1.73% 1.62% 4
Expenses after payments and waivers and
reduction to custodian expenses 1.68% 1.69% 1.75% 1.73% 1.62%
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 78% 15% 26% 63% 27%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. 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.
3. Annualized for periods of less than one full year.
4. Excludes interest expense.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
47 | 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 with respect to
the Fund in general and exclusive voting rights on matters that affect that
class alone. Earnings, net assets and net asset value per share may differ due
to each class having its own expenses, such as transfer and shareholder
servicing agent fees and shareholder communications, directly attributable to
that class. Class A, B and C 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. The Fund calculates the net asset value of its shares as
of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities may be
valued primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. Securities listed or traded on National
Stock Exchanges or other domestic 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 traded on foreign
exchanges are valued based on the last sale price on the principal exchange on
which the security is traded, as identified by the portfolio pricing service,
prior to the time when the Fund's assets are valued. In the absence of a sale,
the security is valued at the official closing price on the principal exchange.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of sixty days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. Futures contracts traded on a
commodities or futures exchange will be valued at the final settlement price or
official closing price on the principal exchange as reported by such principal
exchange at its trading session ending at, or most recently prior to, the time
when the Fund's assets are valued. Securities (including restricted securities)
for which market quotations are not
48 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
readily available are valued at their fair value. Foreign and domestic
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 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 will not invest more than 20% of its total assets in inverse floaters.
Inverse floaters amount to $121,996,289 as of July 31, 2006, which represents
7.81% of the Fund's total assets.
- --------------------------------------------------------------------------------
SECURITIES ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT. Delivery and payment
for securities that have been purchased by the Fund on a when-issued basis or
forward commitment can take place up to ten days 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
internally designated assets with a market value equal to or greater than the
amount of its purchase commitments. The purchase of securities on a when-issued
basis or forward commitment may increase the volatility of the Fund's net asset
value to the extent the Fund executes such transactions while remaining
substantially fully invested. The Fund may also sell securities that it
purchased on a when-issued basis or forward commitment prior to settlement of
the original purchase. As of July 31, 2006, the Fund had purchased $27,803,819
of securities issued on a when-issued basis or forward commitment.
- --------------------------------------------------------------------------------
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 July 31, 2006, securities with an aggregate
market value of $23,000, 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.
49 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 securities and other investments for
federal income tax purposes.
NET UNREALIZED
APPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3,4 TAX PURPOSES
- -------------------------------------------------------------------------------
$1,558,904 $-- $3,201,257 $52,390,641
1. As of July 31, 2006, the Fund had $789,546 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, 2006, details of the capital
loss carryforward were as follows:
EXPIRING
----------------------
2009 $789,546
2. As of July 31, 2006, the Fund had $2,411,711 of post-October losses available
to offset future realized capital gains, if any. Such losses, if unutilized,
will expire in 2015.
3. During the fiscal year ended July 31, 2006, the Fund utilized $2,383,733 of
capital loss carryforward to offset capital gains realized in that fiscal year.
4. During the fiscal year ended July 31, 2005, the Fund utilized $1,502,286 of
capital loss carryforward to offset capital gains realized in that fiscal year.
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, 2006. Net assets of the
Fund were unaffected by the reclassifications.
50 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
The tax character of distributions paid during the years ended July 31, 2006 and
July 31, 2005 was as follows:
YEAR ENDED YEAR ENDED
JULY 31, 2006 JULY 31, 2005
-------------------------------------------------------------
Distributions paid from:
Exempt-interest dividends $ 57,223,547 $ 31,994,879
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of July 31, 2006 are noted below. The primary
difference between book and tax appreciation or depreciation of securities and
other investments, if applicable, is attributable to the tax deferral of losses
or tax realization of financial statement unrealized gain or loss.
Federal tax cost of securities $1,459,882,450
==============
Gross unrealized appreciation $ 56,826,172
Gross unrealized depreciation (4,435,531)
--------------
Net unrealized appreciation $ 52,390,641
==============
- --------------------------------------------------------------------------------
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,
2006, the Fund's projected benefit obligations were increased by $18,222 and
payments of $8,353 were made to retired trustees, resulting in an accumulated
liability of $101,005 as of July 31, 2006.
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.
For purposes of determining the amount owed to the Trustee under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or in other Oppenheimer funds selected by the Trustee. The
Fund purchases shares of the funds selected for deferral by the Trustee in
amounts equal to his or her deemed investment, resulting in a Fund asset equal
to the deferred compensation liability. Such assets are included as a component
of "Other" within the asset section of the Statement of Assets and Liabilities.
Deferral of trustees' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
investment income per share. Amounts will be deferred until distributed in
accordance 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.
51 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts, to the extent they are not
offset by positive cash balances maintained by the Fund, at a rate equal to the
Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item,
if applicable, represents earnings on cash balances maintained by the Fund
during the period. Such interest expense and other custodian fees may be paid
with these earnings.
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and former
trustees and officers with a limited indemnification against liabilities arising
in connection with the performance of their duties to the Fund. In the normal
course of business, the Fund may also enter into contracts that provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would be dependent on future claims that may be made against the
Fund. The risk of material loss from such claims is considered remote.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
- --------------------------------------------------------------------------------
2. 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, 2006 YEAR ENDED JULY 31, 2005
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------
CLASS A
Sold 61,470,593 $ 702,679,345 19,938,576 $ 223,516,947
Dividends and/or
distributions reinvested 2,356,584 26,919,076 1,431,372 15,844,672
Redeemed (11,682,307) (133,186,156) (6,371,483) (70,372,344)
---------------------------------------------------------
Net increase 52,144,870 $ 596,412,265 14,998,465 $ 168,989,275
=========================================================
52 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
YEAR ENDED JULY 31, 2006 YEAR ENDED JULY 31, 2005
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------
CLASS B
Sold 1,827,466 $ 20,914,336 1,070,121 $ 11,925,943
Dividends and/or
distributions reinvested 146,686 1,677,801 164,749 1,816,688
Redeemed (1,507,341) (17,238,329) (2,471,135) (27,100,401)
---------------------------------------------------------
Net increase (decrease) 466,811 $ 5,353,808 (1,236,265) $ (13,357,770)
=========================================================
- ------------------------------------------------------------------------------------
CLASS C
Sold 15,301,733 $ 174,645,638 4,514,407 $ 50,858,939
Dividends and/or
distributions reinvested 318,044 3,624,253 106,662 1,181,896
Redeemed (2,193,411) (24,992,995) (722,327) (7,949,586)
---------------------------------------------------------
Net increase 13,426,366 $ 153,276,896 3,898,742 $ 44,091,249
=========================================================
- --------------------------------------------------------------------------------
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, 2006, were as follows:
PURCHASES SALES
-------------------------------------------------------------
Investment securities $ 1,100,868,578 $ 706,128,861
- --------------------------------------------------------------------------------
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
average annual rate as shown in the following table:
FEE SCHEDULE
---------------------------------------------
Up to $200 million of net assets 0.60%
Next $100 million of net assets 0.55
Next $200 million of net assets 0.50
Next $250 million of net assets 0.45
Next $250 million of net assets 0.40
Over $1 billion of net assets 0.35
- --------------------------------------------------------------------------------
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, 2006, the Fund paid $363,142
to OFS for services to the Fund.
- --------------------------------------------------------------------------------
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
periodically at an annual rate of up to 0.25% of the average annual net assets
of Class A shares of the Fund. The
53 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
Distributor currently uses all of those fees to pay dealers, brokers, banks and
other financial institutions periodically for providing personal services and
maintenance of accounts of their customers that hold Class A shares. Any
unreimbursed expenses the Distributor incurs with respect to Class A shares in
any fiscal year cannot be recovered in subsequent periods. Fees incurred by the
Fund under the Plan are detailed in the Statement of Operations.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B AND CLASS C SHARES. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares to
compensate the Distributor for its services in connection with the distribution
of those shares and servicing accounts. Under the plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% on Class B and Class C
shares. The Distributor also receives a service fee of up to 0.25% under each
plan. If either the Class B or Class C plan is terminated by the Fund or by the
shareholders of a class, the Board of Trustees and its independent trustees must
determine whether the Distributor shall be entitled to payment from the Fund of
all or a portion of the service fee and/or asset-based sales charge in respect
to shares sold prior to the effective date of such termination. The
Distributor's aggregate uncompensated expenses under the plan at July 31, 2006
for Class B and Class C shares were $2,610,903 and $3,346,765, 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 following table for the period
indicated.
CLASS A CLASS B CLASS C
CLASS A CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------
July 31, 2006 $ 1,327,559 $ 14,844 $ 124,510 $ 108,011
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. The Manager has voluntarily undertaken
to limit its management fees not to exceed 0.55% of average annual net assets
for each class of shares. This voluntary undertaking is expected to remain in
effect indefinitely, however, it may be amended or withdrawn by the Manager at
any time without notice to shareholders.
OFS has voluntarily agreed to limit transfer and shareholder servicing
agent fees for all classes to 0.35% of average annual net assets per class. This
undertaking may be amended or withdrawn at any time.
54 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
5. ILLIQUID SECURITIES
As of July 31, 2006, 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 will not invest more than 15% of its net assets (determined at the time of
purchase and reviewed periodically) in illiquid securities. Securities that are
illiquid are marked with the applicable footnote on the Statement of
Investments.
- --------------------------------------------------------------------------------
6. BORROWINGS
The Fund can borrow money from banks in amounts up to one-third of its total
assets (including the amount borrowed) less all liabilities and indebtedness
other than borrowings to purchase portfolio securities, to meet redemption
obligations or for temporary and emergency purposes. The purchase of securities
with borrowed funds creates leverage in the Fund.
The Fund has entered into a Revolving Credit and Security Agreement (the
"Agreement") with a conduit lender and a bank which enables it to participate
with certain other Oppenheimer funds in a committed, secured borrowing facility
that permits borrowings of up to $900 million, collectively. To secure the loan,
the Fund pledges investment securities in accordance with the terms of the
Agreement. Interest is charged to the Fund, based on its borrowings, at current
commercial paper issuance rates (5.3126% as of July 31, 2006). The Fund pays
additional fees of 0.30% per annum on its outstanding borrowings to manage and
administer the facility and is allocated its pro-rata share of a 0.13% per annum
commitment fee for a liquidity backstop facility with respect to the $900
million facility size.
For the year ended July 31, 2006, the average daily loan balance was
$36,349,041 at an average daily interest rate of 4.336%. The Fund had borrowings
outstanding of $20,300,000 at July 31, 2006 at an interest rate of 5.3126%. The
Fund had gross borrowings and gross loan repayments of $704,800,000 and
$752,100,000, respectively, during the year ended July 31, 2006. The maximum
amount of borrowings outstanding at any month-end during the year ended July 31,
2006 was $87,700,000. The Fund paid $153,837 in fees and $1,627,586 in interest
during the year ended July 31, 2006.
- --------------------------------------------------------------------------------
7. RECENT ACCOUNTING PRONOUNCEMENT
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48 ("FIN 48"), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES.
FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an
enterprise's financial statements in accordance with FASB Statement No. 109,
Accounting for Income Taxes. FIN 48 requires the evaluation of tax positions
taken in the course of preparing the Fund's tax returns to determine whether it
is "more-likely-than-not" that tax positions taken in the Fund's tax return will
be ultimately sustained. A tax liability and expense must be recorded in respect
of any tax position that, in Management's judgment, will not be fully realized.
FIN 48 is
55 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. RECENT ACCOUNTING PRONOUNCEMENT Continued
effective for fiscal years beginning after December 15, 2006. As of July 31,
2006, the Manager is evaluating the implications of FIN 48. Its impact in the
Fund's financial statements has not yet been determined.
- --------------------------------------------------------------------------------
8. LITIGATION
A consolidated amended complaint was filed as a putative class action against
the Manager and the Transfer Agent and other defendants (including 51 of the
Oppenheimer funds including the Fund) in the U.S. District Court for the
Southern District of New York on January 10, 2005 and was amended on March 4,
2005. The complaint alleged, among other things, that the Manager charged
excessive fees for distribution and other costs, and that by permitting and/or
participating in those actions, the Directors/Trustees and the Officers of the
funds breached their fiduciary duties to fund shareholders under the Investment
Company Act of 1940 and at common law. The plaintiffs sought unspecified
damages, an accounting of all fees paid, and an award of attorneys' fees and
litigation expenses.
In response to the defendants' motions to dismiss the suit, seven of the
eight counts in the complaint, including the claims against certain of the
Oppenheimer funds, as nominal defendants, and against certain present and former
Directors, Trustees and Officers of the funds, and the Distributor, as
defendants, were dismissed with prejudice, by court order dated March 10, 2006,
and the remaining count against the Manager and the Transfer Agent was dismissed
with prejudice by court order dated April 5, 2006. The plaintiffs filed an
appeal of those dismissals on May 11, 2006.
The Manager believes that the allegations contained in the complaint are
without merit and that there are substantial grounds to sustain the district
court's rulings. The Manager also believes that it is premature to render any
opinion as to the likelihood of an outcome unfavorable to it, the funds, the
Directors/Trustees or the Officers on the appeal of the decisions of the
district court, and that no estimate can yet be made with any degree of
certainty as to the amount or range of any potential loss.
56 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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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, 2006, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the years
in the five-year period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of July 31, 2006, 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, 2006, the results of its
operations for the year then ended, the changes in its net assets for each of
the years in the two-year period then ended, and the financial highlights for
each of the years in the five-year period then ended, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Denver, Colorado
September 14, 2006
57 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FEDERAL INCOME TAX INFORMATION Unaudited
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In early 2007, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2006. 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 fiscal year ended July
31, 2006 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.
58 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
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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
1.800.525.7048, (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 is required to
file Form N-PX, with its complete proxy voting record for the 12 months ended
June 30th, no later than August 31st of each year. The Fund's voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at
www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
59 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
TRUSTEES AND OFFICERS Unaudited
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NAME, POSITION(S) HELD WITH THE PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS; OTHER
FUND, LENGTH OF SERVICE, AGE TRUSTEESHIPS/DIRECTORSHIPS HELD; NUMBER OF PORTFOLIOS
IN THE FUND COMPLEX CURRENTLY OVERSEEN
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803
TRUSTEES S. TUCSON WAY, CENTENNIAL, COLORADO 80112-3924. EACH
TRUSTEE SERVES FOR AN INDEFINITE TERM, OR UNTIL HIS OR
HER RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
CLAYTON K. YEUTTER, Director of American Commercial Lines (barge company)
Chairman of the Board (since January 2005); Attorney at Hogan & Hartson (law
of Trustees (since 2003), firm) (since June 1993); Director of Covanta Holding
Trustee (since 1993) Corp. (waste-to-energy company) (since 2002); Director
Age: 75 of Weyerhaeuser Corp. (1999-April 2004); Director of
Caterpillar, Inc. (1993-December 2002); Director of
ConAgra Foods (1993-2001); Director of Texas Instruments
(1993-2001); Director of FMC Corporation (1993-2001).
Oversees 43 portfolios in the OppenheimerFunds complex.
MATTHEW P. FINK, Trustee of the Committee for Economic Development
Trustee (since 2005) (policy research foundation) (since 2005); Director of
Age: 65 ICI Education Foundation (education foundation) (since
October 1991); President of the Investment Company
Institute (trade association) (October 1991-June 2004);
Director of ICI Mutual Insurance Company (insurance
company) (October 1991-June 2004). Oversees 43
portfolios in the OppenheimerFunds complex.
ROBERT G. GALLI, A director or trustee of other Oppenheimer funds.
Trustee (since 1993) Oversees 53 portfolios in the OppenheimerFunds
Age: 73 complex.
PHILLIP A. GRIFFITHS, Distinguished Presidential Fellow for
Trustee (since 1999) International Affairs (since 2002) and Member (since
Age: 67 1979) of the National Academy of Sciences; Council on
Foreign Relations (since 2002); Director of GSI
Lumonics Inc. (precision medical equipment supplier)
(since 2001); Senior Advisor of The Andrew W. Mellon
Foundation (since 2001); Chair of Science Initiative
Group (since 1999); Member of the American Philosophical
Society (since 1996); Trustee of Woodward Academy (since
1983); Foreign Associate of Third World Academy of
Sciences; Director of the Institute for Advanced Study
(1991-2004); Director of Bankers Trust New York
Corporation (1994-1999); Provost at Duke University
(1983-1991). Oversees 43 portfolios in the
OppenheimerFunds complex.
MARY F. MILLER, Trustee of the American Symphony Orchestra
Trustee (since 2004) (not-for-profit) (since October 1998); and Senior Vice
Age: 63 President and General Auditor of American Express
Company (financial services company) (July 1998-February
2003). Oversees 43 portfolios in the OppenheimerFunds
complex.
JOEL W. MOTLEY, Director of Columbia Equity Financial Corp.
Trustee (since 2002) (privately-held financial adviser) (since 2002);
Age: 54 Managing Director of Carmona Motley, Inc.
(privately-held financial adviser) (since January 2002);
Managing Director of Carmona Motley Hoffman Inc.
(privately-held financial adviser) (January
1998-December 2001); Member of the Finance and Budget
Committee of the Council on Foreign Relations, the
Investment Committee of the Episcopal Church of America,
the Investment Committee and Board of Human Rights Watch
and the Investment Committee of Historic Hudson Valley.
Oversees 43 portfolios in the OppenheimerFunds complex.
60 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
KENNETH A. RANDALL, Director of Dominion Resources, Inc. (electric utility
Trustee (since 1998) holding company) (February 1972-October 2005); Former
Age: 79 Director of Prime Retail, Inc. (real estate investment
trust), Dominion Energy Inc. (electric power and oil &
gas producer), Lumberman's Mutual Casualty Company,
American Motorists Insurance Company and American
Manufacturers Mutual Insurance Company; Former
President and Chief Executive Officer of The
Conference Board, Inc. (international economic and
business research). Oversees 43 portfolios in the
OppenheimerFunds complex.
RUSSELL S. REYNOLDS, JR., Chairman of The Directorship Search Group, Inc.
Trustee (since 1989) (corporate governance consulting and executive
Age: 74 recruiting) (since 1993); Life Trustee of
International House (non-profit educational
organization); Founder, Chairman and Chief Executive
Officer of Russell Reynolds Associates, Inc.
(1969-1993); Banker at J.P. Morgan & Co. (1958-1966);
1st Lt. Strategic Air Command, U.S. Air Force
(1954-1958). Oversees 43 portfolios in the
OppenheimerFunds complex.
JOSEPH M. WIKLER, Director of the following medical device companies:
Trustee (since 2005) Medintec (since 1992) and Cathco (since 1996);
Age: 65 Director of Lakes Environmental Association (since
1996); Member of the Investment Committee of the
Associated Jewish Charities of Baltimore (since 1994);
Director of Fortis/Hartford mutual funds (1994-December
2001). Oversees 43 portfolios in the OppenheimerFunds
complex.
PETER I. WOLD, President of Wold Oil Properties, Inc. (oil and gas
Trustee (since 2005) exploration and production company) (since 1994); Vice
Age: 58 President, Secretary and Treasurer of Wold Trona
Company, Inc. (soda ash processing and production)
(since 1996); Vice President of Wold Talc Company,
Inc. (talc mining) (since 1999); Managing Member of
Hole-in-the-Wall Ranch (cattle ranching) (since 1979);
Director and Chairman of the Denver Branch of the
Federal Reserve Bank of Kansas City (1993-1999); and
Director of PacifiCorp. (electric utility)
(1995-1999). Oversees 43 portfolios in the
OppenheimerFunds complex.
BRIAN F. WRUBLE, General Partner of Odyssey Partners, L.P. (hedge fund)
Trustee (since 2005) (since September 1995); Director of Special Value
Age: 63 Opportunities Fund, LLC (registered investment
company) (since September 2004); Member of Zurich
Financial Investment Advisory Board (insurance) (since
October 2004); Board of Governing Trustees of The
Jackson Laboratory (non-profit) (since August 1990);
Trustee of the Institute for Advanced Study (non-profit
educational institute) (since May 1992); Special Limited
Partner of Odyssey Investment Partners, LLC (private
equity investment) (January 1999-September 2004);
Trustee of Research Foundation of AIMR (2000-2002)
(investment research, non-profit); Governor, Jerome Levy
Economics Institute of Bard College (August
1990-September 2001) (economics research); Director of
Ray & Berendtson, Inc. (May 2000-April 2002) (executive
search firm). Oversees 53 portfolios in the
OppenheimerFunds complex.
61 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
TRUSTEES AND OFFICERS Unaudited / Continued
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- -------------------------------------------------------------------------------------------
INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IS TWO WORLD FINANCIAL
AND OFFICER CENTER, 225 LIBERTY STREET, 11TH FLOOR, NEW YORK, NEW
YORK 10281-1008. MR. MURPHY SERVES AS A TRUSTEE FOR AN
INDEFINITE TERM, OR UNTIL HIS RESIGNATION, RETIREMENT,
DEATH OR REMOVAL AND AS AN OFFICER FOR AN INDEFINITE
TERM, OR UNTIL HIS RESIGNATION, RETIREMENT, DEATH OR
REMOVAL. MR. MURPHY IS AN INTERESTED TRUSTEE DUE TO
HIS POSITIONS WITH OPPENHEIMERFUNDS, INC. AND ITS
AFFILIATES.
JOHN V. MURPHY, Chairman, Chief Executive Officer and Director (since
President and Principal June 2001) and President (since September 2000) of the
Executive Officer (since 2001) Manager; President and a director or trustee of other
and Trustee (since 2002) Oppenheimer funds; President and Director of
Age: 57 Oppenheimer Acquisition Corp. ("OAC") (the Manager's
parent holding company) and of Oppenheimer Partnership
Holdings, Inc. (holding company subsidiary of the
Manager) (since July 2001); Director of OppenheimerFunds
Distributor, Inc. (subsidiary of the Manager) (since
November 2001); Chairman and Director of Shareholder
Services, Inc. and of Shareholder Financial Services,
Inc. (transfer agent subsidiaries of the Manager) (since
July 2001); President and Director of OppenheimerFunds
Legacy Program (charitable trust program established by
the Manager) (since July 2001); Director of the
following investment advisory subsidiaries of the
Manager: OFI Institutional Asset Management, Inc.,
Centennial Asset Management Corporation, Trinity
Investment Management Corporation and Tremont Capital
Management, Inc. (since November 2001), HarbourView
Asset Management Corporation and OFI Private
Investments, Inc. (since July 2001); President (since
November 1, 2001) and Director (since July 2001) of
Oppenheimer Real Asset Management, Inc.; Executive Vice
President of Massachusetts Mutual Life Insurance Company
(OAC's parent company) (since February 1997); Director
of DLB Acquisition Corporation (holding company parent
of Babson Capital Management LLC) (since June 1995);
Member of the Investment Company Institute's Board of
Governors (since October 3, 2003); Chief Operating
Officer of the Manager (September 2000-June 2001);
President and Trustee of MML Series Investment Fund and
MassMutual Select Funds (open-end investment companies)
(November 1999-November 2001); Director of C.M. Life
Insurance Company (September 1999-August 2000);
President, Chief Executive Officer and Director of MML
Bay State Life Insurance Company (September 1999-August
2000); Director of Emerald Isle Bancorp and Hibernia
Savings Bank (wholly-owned subsidiary of Emerald Isle
Bancorp) (June 1989-June 1998). Oversees 91 portfolios
in the OppenheimerFunds complex.
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OTHER OFFICERS OF THE ADDRESSES OF THE OFFICERS IN THE CHART BELOW ARE
THE FUND AS FOLLOWS: FOR MR. ZACK, TWO WORLD FINANCIAL CENTER,
225 LIBERTY STREET, NEW YORK, NEW YORK 10281-1008, FOR
MESSRS. VANDEHEY AND WIXTED, 6803 S. TUCSON WAY,
CENTENNIAL, COLORADO 80112-3924 AND FOR MESSRS.
FIELDING, LOUGHRAN, COTTIER AND WILLIS, 350 LINDEN
OAKS, ROCHESTER, NY 14625. EACH OFFICER SERVES FOR AN
INDEFINITE TERM OR UNTIL HIS OR HER RESIGNATION,
RETIREMENT, DEATH OR REMOVAL.
RONALD H. FIELDING, Senior Vice President of the Manager since January
Vice President (since 2002) 1996; Chairman of the Rochester Division of the
Age: 57 Manager since January 1996; an officer of 14
portfolios in the OppenheimerFunds complex.
DANIEL G. LOUGHRAN, Vice President of the Manager since April 2001. An
Vice President and Portfolio officer of 14 portfolios in the OppenheimerFunds
Manager (since 2005) complex.
Age: 42
62 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
SCOTT S. COTTIER, Vice President of the Manager since 2002; portfolio
Vice President and Portfolio manager and trader at Victory Capital Management
Manager (since 2005) (1999-2002); an officer of 14 portfolios in the
Age: 34 OppenheimerFunds complex.
TROY E. WILLIS, Assistant Vice President of the Manager since 2005;
Vice President and Portfolio Associate Portfolio Manager of the Manager since 2003;
Manager (since 2005) corporate attorney for Southern Resource Group
Age: 33 (1999-2003). An officer of 14 portfolios in the
OppenheimerFunds complex.
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer of
Vice President and Chief the Manager (since March 2004); Vice President of
Compliance Officer OppenheimerFunds Distributor, Inc., Centennial Asset
(since 2004) Management Corporation and Shareholder Services, Inc.
Age: 56 (since June 1983). Former Vice President and Director
of Internal Audit of the Manager (1997-February 2004).
An officer of 91 portfolios in the OppenheimerFunds
complex.
BRIAN W. WIXTED, Senior Vice President and Treasurer of the Manager
Treasurer and Principal (since March 1999); Treasurer of the following:
Financial and Accounting HarbourView Asset Management Corporation, Shareholder
Officer (since 1999) Financial Services, Inc., Shareholder Services, Inc.,
Age: 46 Oppenheimer Real Asset Management Corporation, and
Oppenheimer Partnership Holdings, Inc. (since March
1999), OFI Private Investments, Inc. (since March 2000),
OppenheimerFunds International Ltd. (since May 2000),
OppenheimerFunds plc (since May 2000), OFI Institutional
Asset Management, Inc. (since November 2000), and
OppenheimerFunds Legacy Program (charitable trust
program established by the Manager) (since June 2003);
Treasurer and Chief Financial Officer of OFI Trust
Company (trust company subsidiary of the Manager) (since
May 2000); Assistant Treasurer of the following: OAC
(since March 1999), Centennial Asset Management
Corporation (March 1999-October 2003) and
OppenheimerFunds Legacy Program (April 2000-June 2003);
Principal and Chief Operating Officer of Bankers Trust
Company-Mutual Fund Services Division (March 1995-March
1999). An officer of 91 portfolios in the
OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and
Secretary (since 2001) General Counsel (since March 2002) of the Manager;
Age: 58 General Counsel and Director of the Distributor (since
December 2001); General Counsel of Centennial Asset
Management Corporation (since December 2001); Senior
Vice President and General Counsel of HarbourView Asset
Management Corporation (since December 2001); Secretary
and General Counsel of OAC (since November 2001);
Assistant Secretary (since September 1997) and Director
(since November 2001) of OppenheimerFunds International
Ltd. and OppenheimerFunds plc; Vice President and
Director of Oppenheimer Partnership Holdings, Inc.
(since December 2002); Director of Oppenheimer Real
Asset Management, Inc. (since November 2001); Senior
Vice President, General Counsel and Director of
Shareholder Financial Services, Inc. and Shareholder
Services, Inc. (since December 2001); Senior Vice
President, General Counsel and Director of OFI Private
Investments, Inc. and OFI Trust Company (since November
2001); Vice President of OppenheimerFunds Legacy Program
(since June 2003); Senior Vice President and General
Counsel of OFI Institutional Asset Management, Inc.
(since November 2001); Director of OppenheimerFunds
(Asia) Limited (since December 2003); Senior Vice
President (May 1985-December 2003), Acting General
Counsel (November 2001-February 2002) and Associate
General Counsel (May 1981-October 2001) of the Manager;
Assistant Secretary of the following: Shareholder
Services, Inc. (May 1985-November 2001), Shareholder
Financial Services, Inc. (November 1989-November 2001),
and OppenheimerFunds International Ltd. (September
1997-November 2001). An officer of 91 portfolios in the
OppenheimerFunds complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND OFFICERS AND IS AVAILABLE WITHOUT CHARGE UPON
REQUEST, BY CALLING 1.800.525.7048.
63 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees of the registrant has determined that the registrant does
not have an audit committee financial expert serving on its Audit Committee. In
this regard, no member of the Audit Committee was identified as having all of
the technical attributes identified in Instruction 2(b) to Item 3 of Form N-CSR
to qualify as an "audit committee
financial expert," whether through the type of specialized education or
experience described in that Instruction. The Board has concluded that while the
members of the Audit Committee collectively have the necessary attributes and
experience required to serve effectively as an Audit Committee, no single member
possesses all of the required technical attributes through the particular
methods of education or experience set forth in the Instructions to be
designated as an audit committee financial expert.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $21,000 in fiscal 2006 and $20,000 in fiscal 2005.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years.
The principal accountant for the audit of the registrant's annual financial
statements billed $87,615 in fiscal 2006 and $142,059 in fiscal 2006 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such services include: internal control reviews.
(c) Tax Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees to the registrant during the last two fiscal
years.
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees in fiscal 2006 and $5,000 in fiscal 2005 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such services include: Preparing form 5500
(d) All Other Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $681 in fiscal 2006 and no such fees in fiscal 2005.
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years to the
registrant's investment adviser
or any entity controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant.
(e) (1) During its regularly scheduled periodic meetings, the registrant's
audit committee will pre-approve all audit, audit-related, tax and other
services to be provided by the principal accountants of the registrant.
The audit committee has delegated pre-approval authority to its Chairman
for any subsequent new engagements that arise between regularly scheduled
meeting dates provided that any fees such pre-approved are presented to
the audit committee at its next regularly scheduled meeting.
Under applicable laws, pre-approval of non-audit services maybe waived
provided that: 1) the aggregate amount of all such services provided
constitutes no more than five percent of the total amount of fees paid by
the registrant to it principal accountant during the fiscal year in which
services are provided 2) such services were not recognized by the
registrant at the time of engagement as non-audit services and 3) such
services are promptly brought to the attention of the audit committee of
the registrant and approved prior to the completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual
financial statements billed $13,296 in fiscal 2006 and $147,059 in fiscal
2005 to the registrant and the registrant's investment adviser or any
entity controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant related to
non-audit fees. Those billings did not include any prohibited non-audit
services as defined by the Securities Exchange Act of 1934.
(h) No such services were rendered.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
THE FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF
DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS
1. The Fund's Governance Committee (the "Committee") will evaluate potential
Board candidates to assess their qualifications. The Committee shall have
the authority, upon approval of the Board, to retain an executive search
firm to assist in this effort. The Committee may consider recommendations
by business and personal contacts of current Board members and by
executive search firms which the Committee may engage from time to time
and may also consider shareholder recommendations. The Committee may
consider the advice and recommendation of the Funds' investment manager
and its affiliates in making the selection.
2. The Committee shall screen candidates for Board membership. The Committee
has not established specific qualifications that it believes must be met
by a trustee nominee. In evaluating trustee nominees, the Committee
considers, among other things, an individual's background, skills, and
experience; whether the individual is an "interested person" as defined in
the Investment Company Act of 1940; and whether the individual would be
deemed an "audit committee financial expert" within the meaning of
applicable SEC rules. The Committee also considers whether the
individual's background, skills, and experience will complement the
background, skills, and experience of other nominees and will contribute
to the Board. There are no differences in the manner in which the
Committee evaluates nominees for trustees based on whether the nominee is
recommended by a shareholder.
3. The Committee may consider nominations from shareholders for the Board at
such times as the Committee meets to consider new nominees for the Board.
The Committee shall have the sole discretion to determine the candidates
to present to the Board and, in such cases where required, to
shareholders. Recommendations for trustee nominees should, at a minimum,
be accompanied by the following:
o the name, address, and business, educational, and/or other pertinent
background of the person being recommended;
o a statement concerning whether the person is an "interested person"
as defined in the Investment Company Act of 1940;
o any other information that the Funds would be required to include in
a proxy statement concerning the person if he or she was nominated;
and
o the name and address of the person submitting the recommendation
and, if that person is a shareholder, the period for which that
person held Fund shares.
The recommendation also can include any additional information which the
person submitting it believes would assist the Committee in evaluating the
recommendation.
4. Shareholders should note that a person who owns securities issued by
Massachusetts Mutual Life Insurance Company (the parent company of the
Funds' investment adviser) would be deemed an "interested person" under
the Investment Company Act of 1940. In addition, certain other
relationships with Massachusetts Mutual Life Insurance Company or its
subsidiaries, with registered broker-dealers, or with the Funds' outside
legal counsel may cause a person to be deemed an "interested person."
5. Before the Committee decides to nominate an individual as a trustee,
Committee members and other directors customarily interview the individual
in person. In addition, the individual customarily is asked to complete a
detailed questionnaire which is designed to elicit information which must
be disclosed under SEC and stock exchange rules and to determine whether
the individual is subject to any statutory disqualification from serving
as a trustee of a registered investment company.
ITEM 11. CONTROLS AND PROCEDURES.
Based on their evaluation of the registrant's disclosure controls and procedures
(as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR
270.30a-3(c)) as of 07/31/2006, the registrant's principal executive officer and
principal financial officer found the registrant's disclosure controls and
procedures to provide reasonable assurances that information required to be
disclosed by the registrant in the reports that it files under the Securities
Exchange Act of 1934 (a) is accumulated and communicated to registrant's
management, including its principal executive officer and principal financial
officer, to allow timely decisions regarding required disclosure, and (b) is
recorded,
processed, summarized and reported, within the time periods specified in the
rules and forms adopted by the U.S. Securities and Exchange Commission.
There have been no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a) (1) Exhibit attached hereto.
(2) Exhibits attached hereto.
(3) Not applicable.
(b) Exhibit attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer California Municipal Fund
By: /S/ JOHN V. MURPHY
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John V. Murphy
Principal Executive Officer
Date: 09/14/2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /S/ JOHN V. MURPHY
----------------------------
John V. Murphy
Principal Executive Officer
Date: 09/14/2006
By: /S/ BRIAN W. WIXTED
----------------------------
Brian W. Wixted
Principal Financial Officer
Date: 09/14/2006