City verifies rebate checks mistake as finance plans to reissue 36000 payments

Richmond City officials are taking decisive action to rectify a significant error involving property tax rebate checks that were mistakenly issued to the wrong payees. During the Organizational Development Standing Committee Meeting on May 6, 2025, it was revealed that approximately 8,300 checks were printed with incorrect payee information, affecting around 3,100 recipients.

The city had initially printed a total of 59,000 checks, of which 23,000 were mailed out. Upon discovering the error, city officials managed to pull back 36,000 checks before they were distributed. An audit was promptly initiated to assess the situation, confirming that the calculations for the rebates were accurate, but the checks were issued to the wrong recipients due to a mix-up involving property ownership changes from fiscal year 2024 to 2025.

As of now, 15,000 of the mailed checks have been cashed, while 8,000 remain outstanding. To prevent further confusion, the finance department has implemented a process with financial institutions to verify the validity of checks being cashed. A stop payment was initially placed on all checks, but this has since been adjusted to allow valid checks to be processed.

Looking ahead, the city plans to reissue the remaining checks after the original ones become stale on June 16, 2025. The goal is to have the new checks mailed out by June 30, ensuring that affected property owners receive their rightful rebates without further delay.

This proactive approach aims to restore confidence in the city's financial processes and ensure that residents receive the benefits they are entitled to. The committee emphasized the importance of clear communication with the community as they navigate this complex situation.