MFS CALIFORNIA MUNICIPAL FUND N-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-9537

MFS CALIFORNIA MUNICIPAL FUND

(Exact name of registrant as specified in charter)

500 Boylston Street, Boston, Massachusetts 02116

(Address of principal executive offices) (Zip code)

Susan S. Newton

Massachusetts Financial Services Company

500 Boylston Street

Boston, Massachusetts 02116

(Name and address of agents for service)

Registrant’s telephone number, including area code: (617) 954-5000

Date of fiscal year end: November 30

Date of reporting period: August 31, 2012

ITEM 1. SCHEDULE OF INVESTMENTS.

QUARTERLY REPORT

August 31, 2012

 

LOGO

 

MFS® CALIFORNIA MUNICIPAL FUND

 

LOGO

PORTFOLIO OF INVESTMENTS

8/31/12 (unaudited)

The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.

 

Issuer    Shares/Par     Value ($)  
    
Municipal Bonds - 165.2%                 
Airport Revenue - 7.8%                 
Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “C”, BHAC, 5.25%, 2038    $ 750,000      $ 837,237   
Orange County, CA, Airport Rev., “A”, 5%, 2031      190,000        215,399   
San Diego County, CA, Regional Airport Authority Rev., “A”, 5%, 2021      500,000        596,095   
San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 2030      285,000        319,502   
San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 2031      150,000        167,508   
San Jose, CA, Airport Rev., “A-2”, 5.25%, 2034      440,000        490,978   
    

 

 

  
             $ 2,626,719   
General Obligations - General Purpose - 13.3%                 
Commonwealth of Puerto Rico, “A”, 5.5%, 2018    $ 370,000      $ 415,051   
Commonwealth of Puerto Rico, Public Improvement, “A”, 5.5%, 2039      740,000        770,125   
State of California, AMBAC, 6%, 2017      1,000,000        1,208,100   
State of California, 5%, 2019      300,000        362,538   
State of California, 5.25%, 2035      455,000        522,058   
State of California, 5.5%, 2040      630,000        726,233   
State of California, 5.25%, 2040      415,000        473,689   
    

 

 

  
             $ 4,477,794   
General Obligations - Schools - 24.4%                 
Alhambra, CA, Unified School District, “B”, ASSD GTY, 5.25%, 2028    $ 500,000      $ 573,685   
Banning, CA, Unified School District (Election of 2006), “B”, ASSD GTY, 5.25%, 2033      500,000        551,325   
Chabot-Las Positas, CA, Community College (Election of 2004), “B”, AMBAC, 5%, 2030      60,000        66,344   
Lake Tahoe, CA, Unified School District (Election of 2008), Capital Appreciation, AGM, 0%, 2045      515,000        206,371   
Montebello, CA, Unified School District (Election of 2004), “A-1”, ASSD GTY, 5.25%, 2034      355,000        396,251   
Napa Valley, CA, Unified School District, 5%, 2020      225,000        272,828   
Peralta, CA, Community College District, AGM, 5%, 2016      500,000        576,570   
Pittsburg, CA, Unified School District, “B”, AGM, 5.5%, 2034      500,000        556,840   
Pomona, CA, Unified School District, “A”, NATL, 6.55%, 2029      1,000,000        1,292,340   
San Diego County, CA, Southwestern Community College District (Election of 2008), “C”, 5%, 2040      370,000        412,128   
San Diego, CA, Community College (Election of 2002), 5.25%, 2033      125,000        146,926   
San Joaquin, CA, Delta Community College District (Election of 2004), “B”, Capital Appreciation, AGM, 0%, 2018      400,000        344,032   
Vallejo City, CA, Unified School District, “A”, NATL, 5.9%, 2025      500,000        541,040   
Victor, CA, Elementary School District (Election of 2008), “A”, ASSD GTY, 5.125%, 2034      500,000        563,795   
Washington, CA, Yolo County Unified School District (New High School Project), 5%, 2021      450,000        488,597   
West Contra Costa, CA, Unified School District, “A”, NATL, 5.7%, 2023      500,000        631,610   
West Covina, CA, Unified School District, “A”, NATL, 5.8%, 2021      500,000        604,855   
    

 

 

  
             $ 8,225,537   
Healthcare Revenue - Hospitals - 26.9%                 
ABAG Finance Authority for Non-Profit Corps, CA, Rev. (Sharp Healthcare), 6.25%, 2039    $ 505,000      $ 596,955   
ABAG Finance Authority for Non-Profit Corps, CA, Rev. (Sharp Healthcare), “A”, 5%, 2026      110,000        123,966   
California Health Facilities Financing Authority Rev. (Cedars-Sinai Medical Center), 5%, 2034      250,000        268,175   
California Health Facilities Financing Authority Rev. (Memorial Health Services), “A”, 5%, 2033      295,000        336,035   
California Health Facilities Financing Authority Rev. (Scripps Health), “A”, 5%, 2032      525,000        595,240   
California Health Facilities Financing Authority Rev. (Scripps Health), “A”, 5%, 2040      255,000        279,161   
California Health Facilities Financing Authority Rev. (Sutter Health), “B”, 5.5%, 2020      500,000        615,525   
California Health Facilities Financing Authority Rev. (Sutter Health), “B”, 5.875%, 2031      500,000        599,730   
California Municipal Finance Authority, COP (Community Hospitals of Central California), 5.25%, 2027      250,000        263,420   
California Statewide Communities Development Authority Rev. (Adventist), ASSD GTY, 5%, 2037      500,000        527,900   
California Statewide Communities Development Authority Rev. (Catholic Healthcare West), “K”, ASSD GTY, 5.5%, 2041      1,000,000        1,061,050   
California Statewide Communities Development Authority Rev. (Enloe Medical Center), “A”, CALHF, 5.5%, 2023      500,000        554,915   
California Statewide Communities Development Authority Rev. (Huntington Memorial Hospital), 5%, 2035      535,000        549,675   

 

1

Portfolio of Investments (unaudited) – continued

 

Issuer    Shares/Par     Value ($)  
    
Municipal Bonds - continued                 
Healthcare Revenue - Hospitals - continued                 
California Statewide Communities Development Authority Rev. (Kaiser Permanente), “A”, 5%, 2042    $ 455,000      $ 495,022   
California Statewide Communities Development Authority Rev. (Santa Ynez Valley Cottage Hospital), 5.25%, 2030      260,000        294,185   
California Statewide Communities Development Authority Rev. (Sutter Health), “A”, 5%, 2032      610,000        688,989   
California Statewide Communities Development Authority Rev. (Trinity Health Corp.), 5%, 2041      450,000        500,229   
Santa Clara County, CA, Financing Authority Rev. (El Camino Hospital), AMBAC, 5.125%, 2041      400,000        418,932   
Upland, CA, COP (San Antonio Community Hospital), 6.375%, 2032      250,000        300,475   
    

 

 

  
             $ 9,069,579   
Healthcare Revenue - Long Term Care - 4.2%                 
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Episcopal Senior Communities), 6.125%, 2041    $ 150,000      $ 169,671   
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Odd Fellows Home), NATL, 6%, 2024      1,000,000        1,003,620   
California Statewide Communities Development Authority Rev. (Eskaton Properties, Inc.), 5.25%, 2034      230,000        240,895   
    

 

 

  
             $ 1,414,186   
Miscellaneous Revenue - Other - 1.8%                 
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Jackson Lab), 5.75%, 2037    $ 385,000      $ 416,655   
California Infrastructure & Economic Development Bank Rev. (Walt Disney Family Museum), 5.25%, 2033      160,000        172,526   
    

 

 

  
             $ 589,181   
Sales & Excise Tax Revenue - 2.1%                 
California Economic Recovery, “A”, 5%, 2020    $ 250,000      $ 305,425   
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, 0% to 2016, 6.75% to 2032      250,000        258,503   
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 2054      1,625,000        142,139   
    

 

 

  
             $ 706,067   
Single Family Housing Revenue - Local - 0.0%                 
California Rural Home Mortgage Finance Authority Rev., Mortgage Backed Securities Program, “A”, GNMA, 6.35%, 2029    $ 5,000      $ 5,136   
Single Family Housing - Other - 1.6%                 
California Department of Veterans Affairs, Home Purchase Rev., “A”, 4.5%, 2028    $ 500,000      $ 523,135   
Single Family Housing - State - 4.0%                 
California Housing Finance Agency Rev. (Home Mortgage), “E”, 4.75%, 2030    $ 305,000      $ 287,722   
California Housing Finance Agency Rev. (Home Mortgage), “K”, 5.3%, 2023      355,000        360,641   
California Housing Finance Agency Rev. (Home Mortgage), “L”, 5.45%, 2033      555,000        568,248   
California Housing Finance Agency Rev. (Home Mortgage), “L”, FNMA, 5.5%, 2038      140,000        142,939   
    

 

 

  
             $ 1,359,550   
Solid Waste Revenue - 1.5%                 
Salinas Valley, CA, Solid Waste Authority Rev., AMBAC, 5.125%, 2022    $ 500,000      $ 501,650   
State & Agency - Other - 1.5%                 
Sacramento County, CA, Public Facilities Project, COP, AMBAC, 4.75%, 2027    $ 500,000      $ 492,580   
State & Local Agencies - 17.8%                 
Compton, CA, Public Finance Authority, AMBAC, 5%, 2032    $ 500,000      $ 356,640   
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., FGIC, 5%, 2035      255,000        262,999   
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., BHAC, 5%, 2038      1,000,000        1,028,230   
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A”, FGIC, 5%, 2038      1,000,000        1,021,450   
Huntington Park, CA, Public Financing Authority Rev., “A”, AGM, 5.25%, 2019      500,000        546,470   
Los Angeles County, CA, Schools Regionalized Business Service Corp., Pooled Financing, Capital Appreciation, “A”, AMBAC, 0%, 2018      2,020,000        1,625,979   
Los Angeles County, CA, Schools Regionalized Business Service Corp., Pooled Financing, Capital Appreciation, “A”, AMBAC, 0%, 2023      1,220,000        727,388   
Los Angeles, CA, Municipal Improvement Corp. Lease Rev., “B”, ASSD GTY, 5.5%, 2030      390,000        439,066   
    

 

 

  
             $ 6,008,222   

 

2

Portfolio of Investments (unaudited) – continued

 

Issuer    Shares/Par     Value ($)  
    
Municipal Bonds - continued                 
Tax Assessment - 9.4%                 
Fontana, CA, Public Finance Authority, Tax Allocation Rev. (Sub Lien North Fontana Redevelopment), “A”, AMBAC,
5%, 2029		    $ 1,000,000      $ 1,013,290   
Huntington Beach, CA, Community Facilities District, Special Tax (Grand Coast Resort), “2000-1”, 6.45%, 2031      100,000        101,099   
Irvine, CA, Limited Obligation Improvement (Reassessment District #12-1), 4%, 2022      115,000        122,508   
Irvine, CA, Limited Obligation Improvement (Reassessment District #12-1), 5%, 2023      60,000        68,785   
San Diego, CA, Redevelopment Agency, Tax Allocation (Centre City), “A”, AMBAC, 5.25%, 2025      500,000        528,855   
San Dieguito, CA, Public Facilities Authority, “A”, AMBAC, 5%, 2032      500,000        526,040   
San Jose, CA, Redevelopment Agency, Tax Allocation (Merged Area Redevelopment Project), “C”, NATL, 4.25%, 2030      900,000        799,200   
    

 

 

  
             $ 3,159,777   
Tobacco - 4.1%                 
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.125%, 2047    $ 1,000,000      $ 765,970   
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.75%, 2047      715,000        607,042   
    

 

 

  
             $ 1,373,012   
Toll Roads - 0.8%                 
Foothill/Eastern Corridor Agency, CA, Toll Road Rev., NATL, 5.125%, 2019    $ 250,000      $ 250,378   
Transportation - Special Tax - 2.7%                 
Commonwealth of Puerto Rico Highway & Transportation Authority, Highway Rev., “Y”, AGM, 5.5%, 2016 (c)    $ 450,000      $ 536,333   
San Francisco, CA, Municipal Transportation Agency Rev., “B”, 5%, 2037      335,000        376,128   
    

 

 

  
             $ 912,461   
Universities - Colleges - 6.9%                 
California Educational Facilities Authority Rev. (Dominican University of California), 5%, 2025    $ 120,000      $ 125,675   
California Educational Facilities Authority Rev. (University of San Francisco), 6.125%, 2030      285,000        353,463   
California Public Works Board Lease Rev. (The Regents of the University of California), 5%, 2028      375,000        435,424   
California State University Rev., “A”, 5%, 2024      370,000        446,253   
University Enterprises, Inc. (Auxiliary Organization), “A”, FGIC, 4.375%, 2030      500,000        507,230   
University of California Rev., “G”, 4%, 2029      430,000        467,801   
    

 

 

  
             $ 2,335,846   
Universities - Secondary Schools - 1.4%                 
California Statewide Communities Development Authority, School Facility Rev. (Alliance for College-Ready Public Schools), “A”, 6.1%, 2032    $ 150,000      $ 155,573   
California Statewide Communities Development Authority, School Facility Rev. (Alliance for College-Ready Public Schools), “A”, 6.375%, 2047      315,000        326,674   
    

 

 

  
             $ 482,247   
Utilities - Municipal Owned - 12.0%                 
California Department of Water Resources, Power Supply Rev., “L”, 5%, 2019    $ 805,000      $ 990,762   
California Department of Water Resources, Power Supply Rev., “N”, 5%, 2020      205,000        255,012   
Imperial Irrigation District Electric Rev., “A”, 5%, 2017      500,000        591,085   
Northern California Power Agency, Capital Facilities Rev., “A”, 5.25%, 2024      390,000        448,410   
Sacramento, CA, Municipal Utility District Rev., “U”, AGM, 5%, 2019      750,000        898,680   
Sacramento, CA, Municipal Utility District Rev., “X”, 5%, 2025      370,000        444,359   
Vernon, CA, Electric System Rev., “A”, 5.5%, 2041      370,000        402,989   
    

 

 

  
             $ 4,031,297   
Utilities - Other - 2.7%                 
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 2039    $ 245,000      $ 310,898   
Southern California Public Power Authority (Natural Gas Project No. 1), “A”, 5%, 2033      585,000        605,937   
    

 

 

  
             $ 916,835   
Water & Sewer Utility Revenue - 18.3%                 
Atwater, CA, Public Financing Authority Wastewater Rev., ASSD GTY, 5%, 2034    $ 500,000      $ 534,350   
California Department of Water Resources (Center Valley Project), “A-E”, 5%, 2028      500,000        585,325   

 

3

Portfolio of Investments (unaudited) – continued

 

Issuer    Shares/Par     Value ($)  
    
Municipal Bonds - continued                 
Water & Sewer Utility Revenue - continued                 
Chino Basin, CA, Regional Financing Authority Rev. (Inland Empire Utilities Agency), “A”, AMBAC, 5%, 2038 (f)    $ 1,000,000      $ 1,074,510   
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5%, 2033      135,000        136,033   
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.75%, 2037      110,000        116,857   
Escondido CA, Joint Powers Financing Authority Rev., (Water System Financing), 5%, 2041      460,000        509,413   
Los Angeles, CA, Department of Water & Power Waterworks Rev., “C”, NATL, 5%, 2029      500,000        533,055   
Madera, CA, Irrigation Financing Authority Rev., 6.5%, 2040      440,000        491,709   
Norco, CA, Financing Authority Enterprise Rev., AGM, 5.625%, 2039      215,000        239,684   
San Francisco, CA, City & County Public Utilities Commission Water Rev., “A”, 5%, 2023      445,000        548,187   
San Francisco, CA, City & County Public Utilities Commission Water Rev., “A”, 5.25%, 2031      335,000        388,091   
Sonoma County, CA, Water Agency Rev., “A”, AGM, 5%, 2036      600,000        640,518   
Southern California Metropolitan Water District Rev., “A”, 5%, 2028      325,000        376,740   
    

 

 

  
             $ 6,174,472   
Total Municipal Bonds            $ 55,635,661   
Money Market Funds - 6.0%                 
MFS Institutional Money Market Portfolio, 0.16%, at Net Asset Value (v)      1,999,102      $ 1,999,102   
Total Investments            $ 57,634,763   
Other Assets, Less Liabilities - 1.5%              489,888   
Preferred shares (Issued by the Fund) - (72.6)%              (24,450,000 ) 
Net Assets applicable to common shares - 100.0%            $ 33,674,651   

 

(c) Refunded bond.
(f) All or a portion of the security has been segregated as collateral for open futures contracts.
(v) Underlying affiliated fund that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end.

The following abbreviations are used in this report and are defined:

 

COP   Certificate of Participation

 

Insurers      
AGM    Assured Guaranty Municipal      
AMBAC    AMBAC Indemnity Corp.      
ASSD GTY    Assured Guaranty Insurance Co.      
BHAC    Berkshire Hathaway Assurance Corp.      
CALHF    California Housing Finance Agency      
FGIC    Financial Guaranty Insurance Co.      
FNMA    Federal National Mortgage Assn.      
GNMA    Government National Mortgage Assn.      
NATL    National Public Finance Guarantee Corp.      

Derivative Contracts at 8/31/12

Futures Contracts Outstanding at 8/31/12

 

Description    Currency      Contracts      Value    Expiration Date    Unrealized
Appreciation
(Depreciation)		  
Liability Derivatives               
Interest Rate Futures               
U.S. Treasury Bond 30 yr (Short)      USD         4       $605,625    December - 2012      $(8,014 ) 
U.S. Treasury Note 10 yr (Short)      USD         20       2,674,375    December - 2012      (20,070 ) 
              

 

 

  
                 $(28,084 ) 
              

 

 

  

At August 31, 2012, the fund had liquid securities with an aggregate value of $44,055 to cover any commitments for certain derivative contracts.

See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.

 

4

Supplemental Information

8/31/12 (unaudited)

(1) Investment Valuations

Debt instruments and floating rate loans (other than short-term instruments), including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less generally are valued at amortized cost, which approximates market value. Futures contracts are generally valued at last posted settlement price as provided by a third-party pricing service on the market on which they are primarily traded. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation as provided by a third-party pricing service on the market on which such futures contracts are primarily traded. Open-end investment companies are generally valued at net asset value per share. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. Values obtained from third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data.

The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under the fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.

Various inputs are used in determining the value of the fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments not reflected in total investments, such as futures contracts. The following is a summary of the levels used as of August 31, 2012 in valuing the fund’s assets or liabilities:

 

Investments at Value    Level 1      Level 2      Level 3      Total  
Municipal Bonds      $—         $55,635,661         $—         $55,635,661   
Mutual Funds      1,999,102         —         —         1,999,102   
Total Investments      $1,999,102         $55,635,661         $—         $57,634,763   
Other Financial Instruments                            
Futures Contracts      $(28,084 )       $—         $—         $(28,084 ) 

For further information regarding security characteristics, see the Portfolio of Investments.

(2) Portfolio Securities

The cost and unrealized appreciation and depreciation in the value of the investments owned by the fund, as computed on a federal income tax basis, are as follows:

 

Aggregate cost      $53,742,683   
Gross unrealized appreciation      $4,283,118   
Gross unrealized depreciation      (391,038 ) 
Net unrealized appreciation (depreciation)      $3,892,080   

The aggregate cost above includes prior fiscal year end tax adjustments, if applicable.

 

5

Supplemental Information (unaudited) – continued

 

(3) Transactions in Underlying Affiliated Funds – Affiliated Issuers

An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the fund assumes the following to be an affiliated issuer:

 

Underlying Affiliated Fund    Beginning
Shares/Par
Amount		      Acquisitions
Shares/Par
Amount		      Dispositions
Shares/Par
Amount		      Ending
Shares/Par
Amount		  
MFS Institutional Money Market Portfiolio      2,533,794         9,710,378         (10,245,070 )       1,999,102   
Underlying Affiliated Fund    Realized
Gain (Loss)		      Capital Gain
Distributions		      Dividend
Income		      Ending
Value		  
MFS Institutional Money Market Portfiolio      $—         $—         $1,363         $1,999,102   

(4) Subsequent Event

On September 17, 2012, the fund issued 977 of Variable Rate Municipal Term Preferred Shares (VMTP) at a stated value of $25,000 per share. Proceeds from the issuance of VMTP shares were used to redeem 99.9% of the fund’s outstanding Auction Rate Preferred Shares (ARPS) at a price equal to 95% of the ARPS’ per share liquidation preference of $25,000, or $23,750 per share, plus any unpaid dividends.

 

6

ITEM 2. CONTROLS AND PROCEDURES.

 

(a) Based upon their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this Form N-Q, the registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

 

(b) There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 3. EXHIBITS.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto.

Notice

A copy of the Agreement and Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.

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.

Registrant: MFS CALIFORNIA MUNICIPAL FUND

 

By (Signature and Title)*    JOHN M. CORCORAN
  John M. Corcoran, President

Date: October 17, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*    JOHN M. CORCORAN
  John M. Corcoran, President (Principal Executive Officer)

Date: October 17, 2012

 

By (Signature and Title)*    DAVID L. DILORENZO
 

David L. DiLorenzo, Treasurer

(Principal Financial Officer and Accounting Officer)

Date: October 17, 2012

 

* Print name and title of each signing officer under his or her signature.