Notes to Financial Statements
October 31, 1995
1. Significant Accounting Policies Van Kampen Merritt California Value Municipal Income Trust (the "Trust") is
registered as a diversified closed-end management investment company under the Investment Company Act of
1940, as amended. The Trust commenced investment operations on April 30, 1993.
The following is a summary of significant accounting policies consistently followed by the Trust in the preparation
of its financial statements.
A. Security Valuation-Investments are stated at value using market quotations or, if such valuations are not
available, estimates obtained from yield data relating to instruments or securities with similar characteristics in
accordance with procedures established in good faith by the Board of Trustees. Short-term securities with
remaining maturities of less than 60 days are valued at amortized cost.
B. Security Transactions-Security transactions are recorded on a trade date basis. Realized gains and losses are
determined on an identified cost basis. The Trust may purchase and sell securities on a "when issued" or "delayed
delivery" basis with settlement to occur at a later date. The value of the security so purchased is subject to market
fluctuations during this period. The Trust will maintain, in a segregated account with its custodian, assets having an
aggregate value at least equal to the amount of the when issued or delayed delivery purchase commitments until
payment is made. At October 31, 1995, there were no when issued or delayed delivery purchase commitments.
C. Investment Income-Interest income is recorded on an accrual basis. Bond premium and original issue discount
are amortized over the expected life of each applicable security.
D. Organizational Expenses-The Trust has reimbursed Van Kampen American Capital Distributors, Inc. or its
affiliates (collectively "VKAC") for costs incurred in connection with the Trust's organization and initial registration
in the amount of $25,000. These costs are bei