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According to Indian River County Ordinance 91-9, which governs utility operations, the Utility Department is required to discontinue water and sewer service if a utility bill is not paid in full within 30 days past the bill's due date. In addition to the amount due on the bill, a $2 penalty plus 1.5 percent interest on the unpaid balance is added. Therefore, the county's risk, for larger industrial customers could be significant. Even though utility deposit requirements of recent industrial customers have not been high, the county can expect more industrial customers with higher utility deposit requirements if its economic development program is successful. To limit its exposure, the county could put a cap on the amount of the deposit that it would guarantee. A cap on the utility deposit should be considerably more than recent customers have paid, but not so high as to significantly affect the county's budget. An appropriate amount could be $5,000. • Program Characteristics The county could establish a program to guarantee county utility (county water and/or sewer) deposits for businesses meeting all of the following requirements. Instead of paying the deposit amounts up front, the county would pledge funds that can be drawn upon when necessary. • An establishment classified according to the Standard Industrial Classification (SIC) Manual as Manufacturing (SIC codes 20 through 39), or an establishment included on the county's target industries list, and • a business having a 57year good credit history with its previous utility provider, and • a business with a utility deposit requirement of less than $5,000. For businesses having a utility deposit requirement in excess of $5,000, the county would pay up to $5,000. Staff and the Economic Development Council recommend that the Board of County Commissioners direct staff to establish a program, as outlined above, to guarantee payment of utility deposits for creditworthy industrial and target industry businesses Commissioner Tippin wanted to level the playing field with competing neighboring counties, but he wanted assurance that none of them offer this particular incentive. He also expressed concern that all of the incentives could add up to too great a cost. Director Keating advised that staff had been unable to find any other county offering this particular incentive. Commissioner Eggert felt that this was low risk and could attract attention by reflecting a cooperative attitude. She felt, in spite of our wonderful quality of life, that Indian River County 37 April 23, 1996 97`- �A.cE 891 L—