OUTSOURCING OR SELLING COUNTY DEBT

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

This is a report on the feasibility of outsourcing or selling County debt, not a development project. It was accepted by the Board of County Commissioners on 7/21/2026. The report identifies almost $41 million gross (8%) of the County's outstanding debt as potentially sellable, out of a total of about $525 million as of July 29, 2025. The report recommends the Board consider selling a portion, not the totality, of the outstanding debt portfolio. The report notes that the other 92% is not recommended for sale. The report is in response to Resolution R-785-25, sponsored by Commissioner Danielle Cohen Higgins, adopted July 16, 2025. The report was requested by the Mayor. The report states that the outstanding debt includes non-citation debts from Miami-Dade Fire Rescue (MDFR) emergency medical services and Water and Sewer (WASD) utility billing, and citation-related debt from the Regulatory and Economic Resources (RER) Department and Animal Services Department (ASD), with an additional portion from the Miami-Dade Sheriff's Office. The report states that the outstanding balance of Jackson Health System was not included. The report discusses legal implications, including the Fair Debt Collection Practices Act (FDCPA) and Florida Consumer Collection Practices Act (FCCPA), and notes that the County Attorney's Office recommends, if the County intends to assign or sell code enforcement liens, the County should retain the ability to recall an assignment and prohibit or condition the foreclosure of assigned liens. The report also notes that CCS has almost $17 million average annual collections on recurring balance. The report states that the sale of these receivables will affect departments that include these collections in their Budget, specifically but not limited to code enforcement departments. The report states that the sale of the debt may provide short term cash flow, but would sever access to historical and real-time data, undermining the County's ability to support constituents directly. The report states that HIPAA compliance is a concern for ambulance-related billing. The report states that historically, prior attempts to use outside collection agencies resulted in limited success. The report states that the average age of the receivables in the active inventory managed by CCS ranges from 4 years to 30 years. The report states that the likelihood of collecting decreases as the receivables age. The report states that third-party agencies may work on a contingency basis, based on size and/or age of the amounts. The report states that the County has previous experience with awarding contracts to Outside Collections Agencies in 2003, with a pool of contractors including Linebarger Goggan Blair & Sampson LLP, Alliance One Receivables Management, Inc., Professional Bureau of Collections of Maryland, Inc., Collectco, Inc. and Penn Credit Corp. The report states that the County is not liable for data validation and collectability of the balances sold. The report states that it is legal to sell citations, but as a practical matter, it is not for constituents' or County's best interest. The report states that the majority of the balances due have a compliance component. The report states that outsourcing collections could expose the County to additional legal risks under the FDCPA. The report states that in selling receivables, the County loses the ability to personally assist constituents. The report states that CCS will continue to refine its internal collection process. The report states that CCS manages the collection of outstanding debt for Jackson Health System and certain County Departments. The report states that CCS evaluates hardship cases, manages lien placement and releases, and processes estate, foreclosure, and tax surplus claims. The report states that the County's collection efforts support economically sensitive programs such as low-income housing assistance, second and low-interest mortgage relief, and the County's Infill program. The report states that CCS also handles billing and rebilling for insurance claims. The report states that CCS provides data analysis and trend reporting. The report states that CCS's access and knowledge to multiple internal systems allows for accurate validation and tailored support for constituents. The report states that at times, while reviewing debts owed, CCS must close it due to untimely billing, incorrect information, new property owners, verification of compliance prior to the violation, etc. The report states that the originating Departments must also agree on the salability of the account balance. The report states that under Florida law, Section 8CC-7(c) of the Code provides that any person, firm, corporation or legal entity, other than the present owner of the property involved, who pays any such unsatisfied [code enforcement] lien shall be entitled to receive an assignment of the lien held by the County and shall be subrogated to the rights of the County. The report states that a review of chapter 162, Florida Statute reveals no prohibition on the sale of the liens. The report states that the Fourth District Court of Appeal, in Cnty. Collection Services, Inc. v. Charnock, 789 So. 2d 1109, 1110 (Fla. 4th DCA 2001), held that Palm Beach County does have the power to assign such liens. The report states that Section 8CC-7(d) provides that after one year from the filing of any such lien which remains unpaid, Miami-Dade County may foreclose or otherwise execute on the lien. The report states that the FDCPA and FCCPA do not normally apply to governmental entities based on explicit provisions in the respective Acts. The report states that the Acts do not contemplate the government's assignment of debt to a private debt collector. The report states that the use of a third-party (private) debt collector may subject the County to regulation by the aforementioned Acts. The report states that the County currently reimburses the Clerk of the Court and Comptroller for hearing officers and their staff for the code enforcement appeal process. The report states that the sale of these receivables could jeopardize these funding streams. The report states that internal flexibility in managing hearings, late appeals, hardship relief, and settlements would be lost. The report states that the report will be placed on the next available Board agenda pursuant to rule 5.06 (j) of the Board's Rules of Procedure. The report provides contact information for Ofelia Tamayo, Director, Internal Compliance Department, at (786) 469-5922. The document does not contain any public comment or stakeholder sentiment. The document does not describe a development project, site, or action beyond this administrative report.