Edgar Filing: Delaware Investments Colorado Municipal Income Fund, Inc.

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number:	811-07810

Exact name of registrant as specified in charter:	Delaware Investments^®Colorado
	Municipal Income Fund, Inc.

Address of principal executive offices:	2005 Market Street
	Philadelphia, PA 19103

Name and address of agent for service:	David F. Connor, Esq.
	2005 Market Street
	Philadelphia, PA 19103

Registrant’s telephone number, including area code:	(800) 523-1918

Date of fiscal year end:	March 31

Date of reporting period:	June 30, 2015

Item 1. Schedule of Investments.

Schedule of investments

Delaware Investments^®Colorado Municipal Income Fund, Inc.
June 30, 2015 (Unaudited)

			Principal	Value
			Amount°	(U.S. $)
Municipal Bonds – 138.52%
Corporate-Backed Revenue Bonds – 4.61%
	Public Authority for Colorado
		Energy Revenue
		6.25% 11/15/28	865,000	$	1,072,167
	Public Authority of Colorado
		Energy Natural Gas
		Revenue
		Series 2008
		6.50% 11/15/38	1,750,000		2,298,503
					3,370,670
Education Revenue Bonds – 31.53%
	Colorado Educational &
		Cultural Facilities Authority
		Revenue
		144A 5.00% 7/1/36 #	500,000		497,425
		5.125% 11/1/49	765,000		768,443
		144A 5.25% 7/1/46 #	500,000		498,765
		(Academy Charter School
		Project)
		5.50% 5/1/36 (SGI)	1,720,000		1,725,985
		(Bromley Charter School
		Project)
		5.25% 9/15/32 (SGI)	3,245,000		3,258,239
		(Charter School - Atlas
		Preparatory School) 144A
		5.25% 4/1/45 #	700,000		667,562
		(Charter School -
		Community Leadership
		Academy) 7.45% 8/1/48	500,000		582,935
		(Charter School - Peak to
		Peak Charter)
		5.00% 8/15/34	1,000,000		1,089,350
		(Improvement - Charter
		School - University Lab
		School Building) 144A
		5.00% 12/15/45 #	500,000		491,540
		(Johnson & Wales
		University) Series A
		5.25% 4/1/37	900,000		998,991
		(Liberty Charter School)
		Series A 5.00% 1/15/44	1,000,000		1,056,170
		(Littleton Charter School
		Project)
		4.375% 1/15/36 (AGC)	1,200,000		1,204,236
		(Skyview Charter School)
		144A 5.50% 7/1/49 #	750,000		785,573
		(Student Housing - Campus
		Village Apartments)
		5.00% 6/1/23	1,065,000		1,153,373
	Colorado School of Mines
		Series B 5.00% 12/1/42	2,500,000		2,755,125
	Colorado State Board of
		Governors
		(University Enterprise
		System) Series A
		5.00% 3/1/39	10,000		11,044
	University of Colorado
		5.00% 6/1/31	3,185,000		3,564,716
		Series A 5.00% 6/1/33	1,000,000		1,131,740
	Western State College
		5.00% 5/15/34	750,000		805,830
					23,047,042
Electric Revenue Bonds – 3.46%
	Colorado Springs Utilities
		System Improvement
		Revenue
		Series C 5.50% 11/15/48	750,000		837,750
	Platte River Power Authority
		Series HH 5.00% 6/1/28	1,500,000		1,692,330
					2,530,080
Healthcare Revenue Bonds – 41.95%
	Aurora Hospital Revenue
		(Children’s Hospital
		Association Project)
		Series A 5.00% 12/1/40	4,000,000		4,317,680
	Colorado Health Facilities
		Authority Revenue
		(Catholic Health Initiatives)
		Series A 5.00% 7/1/39	750,000		801,795
		Series A 5.00% 2/1/41	2,400,000		2,567,952
		Series A 5.25% 2/1/33	1,625,000		1,771,981
		Series A 5.25% 1/1/45	1,000,000		1,086,750
		Series C-1
		5.10% 10/1/41 (AGM)	1,000,000		1,054,030
		Series D 6.125% 10/1/28	750,000		848,407
		(Christian Living
		Community Project)
		6.375% 1/1/41	615,000		663,044
		Series A 5.75% 1/1/37	885,000		898,779
		(Covenant Retirement
		Communities Inc.)
		5.00% 12/1/35	1,000,000		1,049,830
		Series A 5.75% 12/1/36	1,000,000		1,074,790

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Schedule of investments

Delaware Investments^®Colorado Municipal Income Fund, Inc. (Unaudited)

			Principal	Value
			Amount°	(U.S. $)
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Colorado Health Facilities
		Authority Revenue
		(Evangelical Lutheran Good
		Samaritan Society)
		5.00% 6/1/28	1,250,000	$	1,331,550
		5.50% 6/1/33	2,000,000		2,192,600
		5.625% 6/1/43	1,000,000		1,096,890
		(Healthcare Facilities -
		American Baptist)
		8.00% 8/1/43	500,000		588,725
		(Mental Health Center of
		Denver Project) Series A
		5.75% 2/1/44	1,500,000		1,670,085
		(National Jewish Health
		Project) 5.00% 1/1/27	500,000		512,120
		(Sisters of Charity of
		Leavenworth Health
		System) Series A
		5.00% 1/1/40	4,750,000		5,132,803
		(Total Long-Term Care)
		Series A 6.00% 11/15/30	400,000		441,276
	Denver Health & Hospital
		Authority Health Care
		Revenue
		(Recovery Zone Facilities)
		5.625% 12/1/40	750,000		815,107
	University of Colorado
		Hospital Authority Revenue
		Series A 6.00% 11/15/29	650,000		745,739
					30,661,933
Housing Revenue Bond – 0.06%
	Colorado Housing & Finance
		Authority
		(Single Family Mortgage -
		Class 1) Series A
		5.50% 11/1/29 (FHA) (VA) (HUD)	40,000		41,347
					41,347
Lease Revenue Bonds – 9.16%
	Aurora Certificates of
		Participation
		Series A 5.00% 12/1/30	630,000		707,162
	Colorado Building Excellent
		Schools Today
		Certificates of Participation
		Series G 5.00% 3/15/32	2,000,000		2,231,220
	Glendale Certificates of
		Participation
		5.00% 12/1/25 (SGI)	1,500,000		1,580,400
	Pueblo County Certificates of
		Participation
		(County Judicial Complex
		Project)
		5.00% 9/15/42 (AGM)	2,000,000		2,178,920
					6,697,702
Local General Obligation Bonds – 12.44%
	Adams 12 Five Star Schools
		5.00% 12/15/25	250,000		306,530
	Arapahoe County School
		District No. 1 Englewood
		5.00% 12/1/31	2,935,000		3,342,789
	Beacon Point Metropolitan
		District
		5.00% 12/1/30 (AGM)	600,000		674,646
	Boulder Larimer & Weld
		Counties St. Vrain Valley
		School District No. Re-1J
		5.00% 12/15/33	750,000		838,290
	Denver City & County
		(Better Denver & Zoo)
		Series A 5.00% 8/1/25	650,000		733,701
	Denver International Business
		Center
		Metropolitan District No. 1
		5.00% 12/1/30	650,000		680,075
	Eaton Area Park & Recreation
		District
		5.25% 12/1/34	190,000		194,298
		5.50% 12/1/38	245,000		253,359
	Jefferson County School
		District No. R-1
		5.25% 12/15/24	750,000		930,743
	Pueblo County School District
		No. 70
		5.00% 12/1/31	250,000		276,893
	Rangely Hospital District
		6.00% 11/1/26	750,000		860,573
					9,091,897
Pre-Refunded/Escrowed to Maturity Bonds – 3.21%
	Adams & Arapahoe Counties
		Joint School District No.
		28J (Aurora)
		6.00% 12/1/28-18§	600,000		698,058

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(Unaudited)

			Principal	Value
			Amount°	(U.S. $)
Municipal Bonds (continued)
Pre-Refunded/Escrowed to Maturity Bonds (continued)
	Colorado State Board of
		Governors
		Series A 5.00% 3/1/39-19§	690,000	$	780,266
	University of Colorado
		Series A
		5.375% 6/1/38-19§	750,000		865,627
					2,343,951
Special Tax Revenue Bonds – 21.33%
	Central Platte Valley
		Metropolitan District
		5.00% 12/1/43	375,000		385,747
	Commerce City
		5.00% 8/1/44 (AGM)	1,000,000		1,101,130
	Denver Convention Center
		Hotel Authority Revenue
		5.00% 12/1/35 (SGI)	2,875,000		2,934,829
	Guam Government Business
		Privilege Tax Revenue
		Series A 5.125% 1/1/42	435,000		468,713
		Series A 5.25% 1/1/36	565,000		620,336
	Regional Transportation
		District Revenue
		Series A 5.375% 6/1/31	460,000		523,365
		(Denver Transit Partners)
		6.00% 1/15/41	2,175,000		2,458,055
		(FasTracks Project)
		Series A
		4.50% 11/1/36 (AGM)	1,500,000		1,572,285
		Series A 5.00% 11/1/38	4,085,000		4,653,305
	Tallyns Reach Metropolitan
		District No. 3
		(Limited Tax Convertible)
		5.125% 11/1/38	295,000		304,965
	Virgin Islands Public Finance
		Authority
		(Matching Fund Senior
		Lien)
		5.00% 10/1/29 (AGM)	500,000		568,275
					15,591,005
Transportation Revenue Bonds – 7.85%
	Colorado High Performance
		Transportation Enterprise
		Revenue
		(Senior U.S. 36 & I-25
		Managed Lanes)
		5.75% 1/1/44 (AMT)	1,110,000		1,184,059
	Denver City & County Airport
		System Revenue
		Series A 5.25% 11/15/36	750,000		842,190
		Series B 5.00% 11/15/28	1,000,000		1,141,800
		Series B 5.00% 11/15/37	2,000,000		2,229,200
	E-470 Public Highway
		Authority
		Series C 5.25% 9/1/25	310,000		345,092
					5,742,341
Water & Sewer Revenue Bonds – 2.92%
	City of Aurora Water Revenue
		First Lien Series A
		5.00% 8/1/36 (AMBAC)	2,000,000		2,136,700
					2,136,700
Total Municipal Bonds
	(cost $94,685,269)				101,254,668

Short-Term Investment – 0.94%
Variable Rate Demand Note – 0.94%¤
	Colorado Educational &
		Cultural Facilities Authority
		Revenue Series D3
		(National Jewish
		Federation Board)
		0.01% 12/1/37 (LOC -
		JPMorgan Chase Bank
		N.A.)	685,000		685,000

Total Short-Term Investment
	(cost $685,000)				685,000

Total Value of
	Securities – 139.46%
	(cost $95,370,269)				101,939,668
Liquidation Value of
	Preferred
	Stock – (41.04%)				(30,000,000	)
Receivables and Other
	Assets Net of
	Liabilities – 1.58%				1,155,145
Net Assets – 100.00%				$	73,094,813

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Schedule of investments

Delaware Investments^®Colorado Municipal Income Fund, Inc. (Unaudited)

____________________

#	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At June 30, 2015, the aggregate value of Rule 144A securities was $2,940,865, which represents 4.02% of the Fund’s net assets.
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. The rate shown is the rate as of June 30, 2015.
°	Principal amount shown is stated in U.S. dollars unless noted that the security is denominated in another currency.
§	Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded.

Summary of abbreviations:
AGC – Insured by Assured Guaranty Corporation
AGM – Insured by Assured Guaranty Municipal Corporation
AMBAC – Insured by AMBAC Assurance Corporation
AMT – Subject to Alternative Minimum Tax
FHA – Federal Housing Administration
HUD – Housing and Urban Development Section 8
LOC – Letter of Credit
SGI – Insured by Syncora Guarantee Inc.
VA – Veterans Administration Collateral

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Notes

Delaware Investments^®Colorado Municipal Income Fund, Inc.
June 30, 2015 (Unaudited)

1. Significant Accounting Policies

The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and are consistently followed by Delaware Investments Colorado Municipal Income Fund, Inc. (Fund). This report covers the period of time since the Fund’s last fiscal year end.

Security Valuation — Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Fund’s Board of Directors (Board). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security.

2. Investments

U.S. GAAP defines fair value as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. The Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized below.

Level 1 –		Inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, exchange-traded options contracts)

Level 2 –		Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities)

Level 3 –		Significant unobservable inputs, including the Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities, fair valued securities)

Level 3 investments are valued using significant unobservable inputs. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.

The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of June 30, 2015:

	Colorado Municipal Fund
	Level 2
Municipal Bonds		$	101,254,668
Short-Term Investments			685,000
Total		$	101,939,668

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Notes

June 30, 2015 (Unaudited)

During the period ended June 30, 2015, there were no transfers between Level 1 investments, Level 2 investments, or Level 3 investments that had a material impact to the Fund. The Fund’s policy is to recognize transfers between levels at the beginning of the reporting period.

3. Subsequent Events

Management has determined that no material events or transactions occurred subsequent to June 30, 2015 that would require recognition or disclosure in the Fund’s “Schedule of investments.”

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Item 2. Controls and Procedures.

The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.

There were no significant changes in the registrant’s internal control over financial reporting 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(a)), exactly as set forth below: