02172015 - News Article - Portage mayor's finance report shows campaign in the red

Portage mayor's finance report shows campaign in the red
NWI Times
February 17, 2015
http://www.nwitimes.com/news/local/porter/portage-mayor-s-finance-report-shows-campaign-in-the-red/article_981a7184-2b5a-57ea-a6e0-5c81a93b8c6d.html

PORTAGE | Mayor James Snyder raised more than $138,000 in campaign funds last year, but ended 2014 more than $18,000 in the red.

It wasn't an election year for his office.

The Portage mayor filed his 2014 campaign year-end financial report on Thursday, nearly a month after the deadline.

Among his campaign's payments were nearly $700 for child care.

While Snyder raised what appears to be a significant amount of money in an off-election year, he spent more than $140,000 and his committee, Citizens for Snyder, is more than $18,000 in debt, according to the report filed by his treasurer, Kenard Taylor, of Valparaiso.

Taylor said it is not unusual for candidates to raise large sums of money in an off year, especially if that candidate anticipates opposition in the following year's election.

"In between elections, you try to raise money to try and do things to prepare for the next election," Taylor said.

In a written statement Tuesday, Snyder said the reports were made by a professional with knowledge of reporting requirements, "not by a campaign volunteer."

"The reports reflect the commitment the Snyder family has made to the city of Portage, as nearly $20,000 dollars are owed to him by the campaign primarily for expenditures for the city," Snyder said in the written statement.

The statement also notes the campaign has donated to "great Portage charitable causes" along with candidates, both Democrat and Republican.

"On top of normal campaign expenses, the money the Snyder campaign has raised has been useful in helping the mayor do city business and promotion when city's budget has been hard pressed for these kind of extras necessary in promoting jobs and bringing tax dollars back home to Portage, that in part is why we have been so successful in these areas," Snyder said.

While Snyder received contributions large and small, some of the income also came from loans. He loaned his campaign more than $4,300 and his business, SRC LLC, loaned the campaign more than $13,000.

In return, the campaign paid SRC LLC more than $21,000 during the year.

Taylor said the payments covered the loans, plus other costs of doing business, from office supplies to rent to salaries. Snyder maintains his campaign office within his business office.

His largest donation came from Chuck Shields, who donated $2,000 under his name and another $2,000 under the name of his company, Circle R Electrical, for a total of $4,000. Other larger donations were $3,250 from Combined Transport Systems LLC of Portage; $2,800 from Precision Towing of Portage; $2,500 from Combined Steel Carriers; $2,250 from Kustom Auto of Portage and $2,150 from Hodges and Davis PC, the city's legal firm, of Portage and Merrillville.

Snyder's biggest expenditure in 2014 were two payments to Winston & Strawn LLP, a Chicago law firm. He paid them a total of $25,000 from campaign funds. He also paid the local legal firm of Dogan & Dogan $2,500. Taylor said those expenses were directly related to the ongoing FBI investigation.

Snyder also paid his wife Deborah a total of $8,000 during the year, noting the payments were for "campaign work."

Another $695 of his campaign funds were noted as paying for child care.

Taylor said it is not unusual to claim those sorts of costs on campaign finances.

"You have expenses as a result of you being in office, but you are not reimbursed by that office," he said, adding Snyder and his wife have four children.

As mayor, the couple are required to attend certain events and must hire a baby sitter. However, the city doesn't reimburse him for those costs of doing business, so it paying for a baby sitter is a legitimate campaign costs, he said.

Taylor said the same is true for numerous other entries on the 73-page finance report that noted Snyder paid for "city car wash," "city trip" or "department head meetings."

Snyder also used campaign funds to reimburse the city's Utility Service Board for $7,154 in three payments, noting the payments were for "city business."

Taylor said Snyder reimbursed the board after using utility department funds for what he felt was legitimate city business, but was requested by the board to repay the funds.

Snyder's reimbursement to the utility department of funds used to pay for a trip was part of the records subpoenaed by the FBI last summer.

Taylor said Snyder's report is more detailed than is required, listing many expenditures for under $100 that could have been lumped into a nonitemized category.

"We wanted to make sure everything was open and available to see," Taylor said.

021320015 - News Article - Election board moves Snyder's financial records matter to legal council

Election board moves Snyder's financial records matter to legal council
NWI Times
Feb 13, 2015
http://www.nwitimes.com/news/local/porter/valparaiso/election-board-moves-snyder-s-financial-records-matterto-legal/article_d776d848-b176-5fc2-8537-bdb407986cdc.html
VALPARAISO | As far as it knows, the Porter County Election Board has never imposed a fine on a political candidate for filing delinquent financial reports. And although it was called for by some at the board's meeting Friday for one mayoral candidate, the likelihood is it won't happen.

On the board's agenda was Democratic Chairman Jeff Chidester's complaint against Portage Mayor James Snyder for not filing his annual financial report on time. The deadline for candidates who maintain active committees was noon Jan. 21.

Chidester said the good news was Snyder filed his report Thursday night but the bad news was it's 23 days late "and it's quite incomplete."

"There's a lot of things that are really missing that you're supposed to put in there — addresses, explanations," Chidester said. "The numbers just don't seem to add up."

Chidester told the board the matter is a violation according to the election code and pointed out a penalty that calls for a $50 fine a day up to $1,000.

"If we don't put our foot down these reports are going to constantly be late from both my people and (Republican Party Chair Michael) Mr. Simpson's people," Chidester said. "Let's start today and consider putting a fine on this one and send a message. Let everyone know this isn't going to be tolerated."

Kenard Taylor, Snyder's campaign treasurer, said he advised Snyder to file the report late because to file a "fraudulent" report full of errors would have meant facing a stiffer penalty.

"We will fill in the addresses and missing gaps," Taylor said.

Taylor repeated what he said in January that they had to amend Snyder's 2011, 2012 and 2013 reports before tackling the 2014 one.

"In the past, most campaigns have had volunteers do the reports," Taylor said. "They don't know accounting and state law and what happens is you end up with reports on both party sides that are mishmash with misinformation."

Election Board President David Bengs said while it's lenient to give the campaign the opportunity to file an amended report or file through a late filing "we're talking about people who do this who may only run a campaign one time in their lives."

Board attorney Ethan Lowe said there have been a number of similar complaints through the years and the board, regardless of which political party had a majority of representation on the board, has never imposed a fine. He said even before a fine could be imposed there would have to be a properly noticed hearing.

"Never in the history of the board that I'm aware of have these types of matters even advanced to that stage," he said.

Bengs said he believed the best practice is to give the campaign the opportunity to get the report done properly.

"If we have to pursue further if they're failing to do so then we can pursue a more stringent violation," he said.

The board voted 2-1 to pass the matter on to its legal council to review the original complaint as well as the amended filing by Snyder. Bengs and County Clerk Karen Martin, who also is on the board, voted yes, with board member Jerome Davison voting no.