Call animal control and report the dog getting into your yard so they document THEIR dog is the aggressor.
As long as your dog is up to date on rabies, you are fine except the at home quarantine in most states. That said, if not up to date, things will go terribly bad because the quarantine for unvaccinated can be at a vet office for up to a year some places, or immediate destruction to determine if it has rabies when it has bitten a person or unvaccinated pet.
I like both the electric and block idea. I have pea gravel along my fence line to prevent digging. I wanted to put railroad ties as I like the look but they were really expensive new and the used ones had possibly toxic oils on them. But my fence is buried about 5 inches so with that and the pea gravel I am good. You need the blocks or something that the dog can't get under.
I would file a police report against the dog unless you are able to talk to the owners and ask them to please restrain their dog, put it inside or do something to stop it harassing your dogs.
Fifth… yeah, stop your dogs from fence fighting.
(hugs)