OUTSOURCING OR SELLING COUNTY DEBT

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

This legislative matter, File Number 261102, is a report on the feasibility of outsourcing or selling County debt, initiated by Directive No. 251385 and sponsored by Commissioner Danielle Cohen Higgins. The report analyzes the types and amounts of debt that could be sold or outsourced, potential buyers, and financial implications. As of July 29, 2025, Miami-Dade County had approximately $525 million in outstanding debt. The report identifies about $41 million (8%) of this debt as potentially suitable for sale to third-party collection agencies or receivables buyers, excluding citation-related debt and debt with compliance components or HIPAA considerations. The Internal Compliance Department's Credit and Collection Section (CCS) recommends considering the sale of a portion of the outstanding debt portfolio to generate cash flow, with specific criteria to minimize risk. The report notes that the County has prior experience with outside collection agencies, listing several firms that have been involved in past contracts. Legal analysis indicates Florida law permits the assignment of code enforcement liens, but recommends retaining control and the ability to recall assignments. Potential risks include exposure to the Fair Debt Collection Practices Act (FDCPA) and the Florida Consumer Collection Practices Act (FCCPA) if debt is assigned to private collectors, and potential severance of access to data and internal flexibility. The report is scheduled for the Board of County Commissioners agenda on July 21, 2026.