Machine about 1/8" off the outer edge of the hub.
Also check the bearing it must have the inner race proud of the outer race, some flanged bearing are not made like this.
When refurbishing these wheels I gave up on the JD bearings and fit Toro roller bearings from the front casters of the ZTR's.
These will block off the grease hole so they have to come off every second season or so and be packed with fresh grease.
I like to use marine grease ( blue ) or farm grease ( red ) as both of these handle water better than wheel earing grease