MYRTLE BEACH, SC (WBTW) – The new parking rules along the Golden Mile could threaten millions of dollars Myrtle Beach receives in federal funding.

The issue comes from a 1995 contract the city has with the U.S. Army Corps of Engineers. The contract was sent to News 13 by Horry County Councilman, Harold Worley. The contract outlines how the city gets millions of federal taxpayer dollars for beach renourishment projects.

Worley says he believes the city is not in compliance with the contract because of specific wording on parking. It says the city of Myrtle Beach “shall provide and maintain necessary access roads, parking areas and other public use facilities open and available to all on equal terms.”

Worley says the new parking fees are not “equal” because Myrtle Beach residents can have a decal and avoid paying the fees while Horry County residents have to pay $2 an hour or $10 a day.

Myrtle Beach Mayor John Rhodes says Worley’s interpretation is incorrect.

“We feel that we are in compliance one hundred percent as to what the corps has asked us to do since 1995,” said Rhodes. “As a matter of fact, the same deal was reviewed in 2005 and we were in compliance then with paid parking.”

Mayor Rhodes says city residents pay city property taxes which is why they don’t have to pay along the Golden Mile. He believes the city is in compliance but the U.S. Army Corps of Engineers will take a look at this situation.

“When we checked with them prior to this we did not see a problem and they did not see problem,” added Rhodes.

You can count on News 13 to keep you updated on this story.