"The next steps will be a requirement to present a preliminary bid to (Pan Am officials) in October," said David Adames, executive director of Tourism Hamilton. "It will mean coming back to council to get approval."

Hamilton became one of the first municipalities to join the bid process after councillors approved a motion last April to bid on the Pan American Games. Councillors did not know how much the bid would cost the municipality when they approved the process.

Mayor Fred Eisenberger has emphasized the city has not yet signed a document to join the bid process. He said the vote was for Hamilton to support a Golden Horseshoe bid.

Prime Minister Stephen Harper announced the federal government's support last week for a southern Ontario bid to host the Games. McGuinty had been poised to meet with Pan American Sports Organizations at Canada Olympic House in Beijing on August 14 without the federal government's commitment.

McGuinty will now have the entire country's backing for his presentation during his three-day visit of China.

Adames said it will become clearer what municipalities will need to do to move the bid process forward once the presentation has been made.

Other communities that have expressed an interest in becoming part of the Games include Markham, Mississauga, Burlington, and Oakville. A formal agreement has not yet been established with municipalities.

Ontario has already agreed to fund 35 per cent of the $1.77 billion budget, or about $620 million, and will be responsible for any cost overruns. McGuinty had been urging Harper's government to pick up 35 per cent of the cost. The municipalities, including Hamilton, Toronto, the Niagara Region, Durham and Barrie, will be on the hook for about $530 million, or about 30 per cent of the cost.

The federal government did not announce a final figure, because security costs with the OPP, the RCMP and other agencies had yet to be completed.

The Canadian Taxpayers Federation said it was "disappointed" at the federal government's announcement.

CTF Ontario Director Kevin Gaudet said all political leaders involved in the bid should be given "gold medals for waste."

"Wasteful expenditures like this are what keeps tax relief from being made," he noted.

The Pan Am Games are held every four years and attract 42 countries. Harper said during his announcement that the 2015 Games would inject about $2 billion into the Golden Horseshoe community, creating about 17,000 jobs and attracting 250,000 tourists.

It's expected that a final decision on the host country will be announced in 2009.

Adames, who also led Hamilton's failed 2014 Commonwealth Games bid, has stated there is a strong indication from the Canadian Olympic Committee that a Golden Horseshoe bid would be the preferred choice among Pan American officials. The other cities expected to submit a bid are Lima, Peru; Bogota, Colombia and Caracas, Venezuela.

The 2007 Games were held in Rio de Janeiro, Brazil, while the 2011 Games will be in Guadalajara, Mexico.

The Rio Games, originally budgeted for $91 million, cost $1.9 billion.

Hamilton last hosted a major global event in 2003, with the world road cycling championships. The city hasn't hosted a multi-sport event since the 1930 British Empire Games.

City officials are hoping that by participating in the bid, Hamilton will receive new sporting facilities, including an aquatic centre and a new stadium.