OUTSOURCING OR SELLING COUNTY DEBT

Board of County Commissioners · 2026-07-21 · report

Miami-Dade County is considering the feasibility of outsourcing or selling a portion of its outstanding debt, specifically identifying approximately $41 million gross (8%) of the total $525 million outstanding debt as potentially suitable for sale to third-party collection agencies or receivables buyers. The report, initiated by Resolution R-785-25, analyzes the types of debt, potential buyers, and financial implications. The recommendation is to sell only a portion of the debt portfolio to generate cash flow, with specific criteria to minimize risk. The County's Internal Compliance Department's Credit and Collection Section (CCS) manages collections and advises against selling debt with compliance components or those requiring personal assistance to constituents, citing concerns about HIPAA, Fair Debt Collection Practices Act (FDCPA) implications, and loss of internal collection capabilities. The report notes past experiences with outside collection agencies and legal precedents regarding the assignment of liens. The final decision on whether to proceed with selling debt is pending Board of County Commissioners assignment.