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.