The city has already budgeted $11 million of the $15-million cost of the project in its 2009 capital budget. But politicians and staff have been scrambling to cover the $4 million shortfall, caused by delays in construction.

The $4 million had been incorporated into this year’s capital budget. But councillors understood Flamborough taxpayers would pay for the shortfall, according to the city’s area-rated policy for recreation facilities.

Members of the city’s budget steering committee turned thumbs down on McCarthy’s request to have the city use part of the $48 million from the provincial government to cover the shortfall. The $48 million, which Hamilton officially received last week from Ancaster-Dundas-Flamborough-Westdale Liberal MPP Ted McMeekin, will be used by the city to pay for upgrading its roads and bridges.

“We need to maintain our area-rating policy,” said Mayor Fred Eisenberger. “I am not prepared to vary from that.”

Hamilton mountain councillor Tom Jackson said “somewhat obstinate” suburban councillors will soon regret keeping the area-rating policy intact.

“It is a double-edged sword,” he said.

Earlier this year, councillors agreed not to change the area-rating policy, if at all, until 2011. Under the policy, a project or service will only be paid by the former municipality that receives the project or service. Suburban and rural councillors have advocated keeping the policy in place to prevent them, they say, from using their tax dollars to pay for expensive projects in other areas of the city.

Jackson said as former suburban municipalities grow and the need for services and facilities become more intense, residents in those areas won’t be anxious to pay for them through higher taxes. And the heightened economic crisis will only make those services and programs more expensive for taxpayers to afford, he said.

“It would be easier for the entire city to pay for it, than just one area,” he said.

“There will be some pain.”

Even Dundas councillor Russ Powers agreed with Jackson, saying the rest of Hamilton’s councillors shouldn’t “shoulder the extra burden.”

The twin pad arena, which will include two regulation- size ice surfaces, plus viewing and meeting hall space, is expected to be completed in 2009 or 2010.

It is modeled on a 65,000-square-foot arena on Appleby Line in Burlington.

Construction on the project was delayed due to a search for a proper site for the facility, which will be located behind the current North Wentworth Arena at Clappison’s Corners.

The original structure, erected in in 1973, will be demolished once the twin pad arena is built.