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 County's Internal Compliance Department's Credit and Collection Section (CCS) recommends selling only a portion of the debt to generate cash flow, with specific criteria to minimize risk. Debts with compliance components, such as citations requiring further action, and those involving sensitive personal data (HIPAA concerns) or requiring direct constituent assistance (e.g., mortgage relief programs), are not recommended for sale. The report notes that the County has prior experience with outside collection agencies, listing several firms that were part of a 2003 Request for Approval. Legal analysis indicates Florida law generally permits the assignment of liens, but cautions about potential exposure to the Fair Debt Collection Practices Act (FDCPA) and Florida Consumer Collection Practices Act (FCCPA) when assigning debt to private collectors. The sale could impact departmental budgets and funding streams, and sever access to data crucial for constituent support and settlement authority. The report will be presented to the Board of County Commissioners.