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. Non-citation debts like emergency medical services and utility billing, and citation-related debts from departments such as Regulatory and Economic Resources and Animal Services are included in the total outstanding debt. The report notes that selling citation-related debt is not considered in the County's best interest due to compliance requirements and the need for personal assistance to constituents. The County has prior experience with outside collection agencies, with a list of potential providers identified. Legal review indicates the County has the power to assign code enforcement liens, but recommends retaining control and the ability to recall assignments. Concerns are raised about potential exposure to the Fair Debt Collection Practices Act (FDCPA) and Florida Consumer Collection Practices Act (FCCPA) if debt is assigned to private collectors. The sale could impact funding streams for departments and the Clerk of the Court and Comptroller for the code enforcement appeal process. Internal analysis suggests that outsourcing could sever access to data, undermine constituent support, and lead to loss of internal flexibility. The report is pending Board of County Commissioners assignment.