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, estimated at $525 million as of July 29, 2025. The Internal Compliance Department's Credit and Collection Section (CCS) recommends selling approximately $41 million (8%) of this debt, specifically non-citation related debts like emergency medical services and utility billing, while excluding citation-related debt due to compliance requirements and constituent assistance needs. The report analyzes the market for such debt, potential buyers, and financial implications, noting that the average age of receivables ranges from 4 to 30 years. Previous experience with outside collection agencies in 2003 included firms like Linebarger Goggan Blair & Sampson LLP and Alliance One Receivables Management, Inc. Legal considerations include Florida statutes regarding lien assignment and potential applicability of the Fair Debt Collection Practices Act (FDCPA) if debt is sold to private collectors. The sale could provide short-term cash flow but might sever access to data, impact departmental budgets, and reduce internal flexibility for constituent assistance and settlements. The report is scheduled for presentation to the Board of County Commissioners.