It's a scenario that has both Flamborough councillors fighting mad, and girding to battle their urban colleagues to prevent any change to the former suburban municipality's area-rated service.

"I'm ready for it," said an angry Margaret McCarthy.

Added Ward 14 councillor Robert Pasuta, "If you (eliminate area-rating) either me or Margaret will become the next mayor of Flamborough."

McCarthy said since Flamborough joined the new city of Hamilton, 42 per cent of the city's new tax dollars have come from Flamborough.

McCarthy said area-rated services such as the Flamboro Slot revenues, transit, culture and fire service are mandated in the Hamilton Act that amalgamated the municipalities in 2001.

She warned Hamilton's urban politicians that if they continue the push to have the slot revenues deposited into a general revenue for the entire city to use, "You will have this room filled to the roof with angry people."

"This is not fruitful, this is not helpful, this is just causing mayhem."

McCarthy, who reluctantly agreed last year to allow some of the slot revenue to be used for Ancaster, said she is prepared to keep the slots revenue distribution the same as last year.

"I don't want any more," she said, adding Flamborough homeowners since amalgamation have been the most heavily taxed former municipality in the new city.

Pasuta lamented that since he was elected in 2006, he has supported urban councillors' pet projects. But as the service levels in urban Hamilton increase, snow plowing, garbage pickup, and road repairs in the rural areas have deteriorated, he said.

"I'm supportive of Hamilton projects. I've supported urban councillors, yet we are bickering over slots revenue," said Pasuta. "It's frustrating. We are paying more taxes now. I will be murdered on this budget."

Flamborough last year received just over $3 million in slots revenues, while $500,000 was directed to Ancaster to reduce taxes and $268,000 was placed in the general levy.

This year, the slots revenue pie is expected to be between $3.85 million and $4 million.

In the 2008 budget, Waterdown residents are expected to pay the highest taxes at 5.6 per cent, while rural Flamborough residents are projected to pay about 4.4 per cent more.

Under an idea floated by some urban councillors, there is a proposal to eliminate area-rated slot revenue. Urban councillors have suggested a five-year phase-out starting in 2008, which will mean Waterdown residents could be hit this year with a 6.5 per cent tax hike, and rural residents a 5.3 per cent increase.

Some urban politicians have suggested eliminating the area-rated service all in 2008, which would mean Flamborough residents would pay a 10 per cent tax hike, while Hamilton residents would get a 0.5 per cent tax reduction, said Corporate Services General Manager Joe Rinaldo.

"This is about fairness and equity," said Mountain councillor Terry Whitehead, a proponent of eliminating the area-rated services. "The best way is to put the (revenue) all in one pot. (Area-rated services) is an artificial way to set tax rates."

Whitehead pointed out later that all of Hamilton's new residential development is occurring in Flamborough and Ancaster. He argues people living in new development areas are unfairly receiving subsidized services from the rest of the city.

"People who are buying new homes should pay their fair share. It is unpalatable to offset taxes on new homes in Ancaster and Flamborough," he said.

Ward 7 councillor Scott Duvall said it's time to phase out area-rating services over a five-year period. Since he was elected in 2006, he discovered his ward has had road and recreational projects waiting for funding for nearly 20 years.

"We have special needs up here," he said.

Pasuta countered that his rural constituents have been short-changed by the city in services since Flamborough was amalgamated. They continually pay high taxes, yet they see incompetent snow clearing and crumbling roads.

Pasuta said after wrestling city staff for over a year, the 8th Concession Road will finally get fixed at a cost of just over $1 million.

"Our roads are worse than ever," he said.

Councillors have delayed approving this year's budget until mid-April, in part to review the options on the area-rated slot revenues.

But the area-rating fight is far from over. Last September, councillors deferred debating whether to keep the area-rating program intact until after this year's budget deliberations.

Urban and suburban politicians are gearing up for a fight this June to decide whether to eliminate such area-rated services as fire, transit and culture.