MYRTLE BEACH, S.C. (AP) – Federal officials are reviewing new Myrtle Beach parking fees to see if they violate a contract providing federal dollars for city beaches.

New parking fees on the north end of the city allow residents who have paid a car tax to park for free while non-residents pay $2 an hour and $10 a day.

Horry County Councilman Harold Worley tells The Sun News of Myrtle Beach the new arrangement may violate a 1995 contract with the U.S. Army Corps of Engineers.

The contract says that to get beach money, parking areas must be available on equal terms. Mayor John Rhodes says city residents also pay for parking though vehicle taxes.

The Corps is looking into the matter.

Myrtle Beach is the heart of South Carolina $19 billion tourism industry.