Portland Mayor Charlie Hales is expected to propose a tax hike on businesses so he has more money to dole out in his final budget, The Oregonian/OregonLive has learned.

The proposal could increase spending within Hales' budget by $5 million to $10 million, according to multiple sources briefed on the concept. Hales will release his budget during an uncharacteristically showy press conference scheduled for 10:30 a.m. Monday in front of City Hall.

But it's not clear if Hales will have political support to move forward. The tax increase could prove controversial and the timing isn't great.

That's because Portland is already raking in cash at record levels, according to new financial forecasts. And Portland voters in two weeks will be asked to approve a gas tax to pay for street maintenance and safety projects, raising questions about the viability of two significant taxes at the same time.

Hales' spokeswoman, Sara Hottman, wouldn't confirm the proposal Sunday afternoon and said details of the entire budget will be released Monday.

As of last week, Hales had been expected to roll out a discretionary general fund of $492.8 million - which includes $25.6 million more than necessary to continue existing programs.

That pot of money would swell to about $500 million under Hales' proposal.

Clearly, revenue isn't a problem. Instead, it's the city's long spending list.

Hales last year ordered city bureaus to offer up budget cuts, hoping to shift money to pay for new parks positions and housing. Hales now hopes to add even more money for the 2016-17 fiscal year to put toward housing and public safety efforts, among other things.

The plan would raise Portland's tax rate on business income. The level is currently 2.2 percent. Portland is expected to collect about $108 million in the current fiscal year from businesses taxes.

Any rate increase would grow that pot not just now, but in subsequent years, creating an ongoing surge in revenues. But because the hike would happen under Hales' watch, he'd have a big say dictating that future spending - and any new money would likely go toward projects that help cement his legacy.

This isn't the first time Hales has tried to increase revenues during Portland's budget rollout. In the early 2000s, when he was a city commissioner, Hales proposed a transportation fee but pulled it back amid opposition.

-- Brad Schmidt

503-294-7628

@cityhallwatch