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In order to clean up the IRCDUS accounts receivables that are described herein, a four step process is recommended in each of the account type categories. There is a recommendation to offer two payment options in each category. There will be a recommendation to pursue foreclosure, where applicable, against any properties where one of the two payment options is not exercised. There is a fourth recommendation to update County Code so that the aged accounts receivable situations are addressed before loans are expired or more than twenty-four months of past -due charges accrue. Funding: . Utility operating funds will be utilized when writing off most of the bad debt. However, any principle balance written off on impact fee loans will be assessed against the impact fee fund. An adjusting journal entry will record the bad debt expense for the amounts written off. More than likely, a budget amendment will be needed to cover this expense. The worst-case scenario impact to the utility funds is $2,881,000. This number will vary based upon which account holders decide to participate in the various settlement options that are presented in the recommendations. Recommendation: Staff recommends that the BCC either modify or accept the recommendations as listed. Staff also recommends that the BCC direct staff to come back with an ordinance at a public hearing so that the recommended code modifications can be adopted. Water and Sewer Accounts 1. Establish a ninety -day time period during which the County will waive all penalties and interest on any water and sewer accounts that have accumulated over twenty-four consecutive months of charges. It is suggested that the time -period be determined based upon the BCC approval date at a future public hearing. The date will provide time to notify customers via certified mail as well as allow time for the customers to consider which settlement option they want to take, if any. 2. Establish a twelve-month period during which the County would waive ninety percent of all accumulated penalty and interest charges on any water and sewer accounts that have accumulated over 24 months of charges and fees. This may be a more viable option for customers who cannot afford to pay within the 907day option. 3. Incorporate into County Code the directive to work with the County Attorney's office to pursue foreclosure, if applicable, on any properties that have owners who do not take advantage of any of the settlement options, and once this process is complete, write off the accounts receivable balance and. release the lien on the property. 4. Establish a policy going forward to notify delinquent account owners that are approaching the 24 - month deadline that they must bring their account current, or the county will pursue foreclosure, if applicable. Such policy shag include the directive for staff to work with the County Attorney's office to pursue foreclosure, when applicable, if such account balances are not otherwise settled. 44