WASHINGTON -- Learning a lesson from the Richmond bankruptcy case, Coachella Valley, another financially troubled California school district, overcame investor fears by providing additional security to back up its $8 million certificates of participation offering last month.

The issue was readily snapped up by investors -- despite the district's acknowledgement in its official statement that it is "experiencing financial difficulty" -- because it was secured by tax increment revenues provided by two area redevelopment agencies. Tax increment revenues come from the increased taxes that result from rising property values.

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