OUTSOURCING OR SELLING COUNTY DEBT

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

This legislative item, 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, market conditions, and estimated recovery rates. As of July 29, 2025, Miami-Dade County had approximately $525 million in outstanding debt, including non-citation debts (e.g., emergency medical services, utility billing) and citation-related debt. The report identifies approximately $41 million (8%) of this debt as potentially suitable for sale to third-party collection agencies or receivables buyers, with the caveat that the County would not be liable for data validation or collectability. The remaining 92% is not recommended for sale due to compliance requirements, data privacy concerns (HIPAA), and the need for personalized constituent assistance. The report notes that selling debt could lead to legal risks under the Fair Debt Collection Practices Act (FDCPA) and Florida Consumer Collection Practices Act (FCCPA) if applied to third-party collectors. The County has prior experience with outside collection agencies, listing examples from 2003 and current market providers. The staff recommends considering the sale of a portion of the outstanding debt portfolio to generate cash flow, but with specific criteria to minimize risk. The report is scheduled for the Board of County Commissioners agenda on July 21, 2026.