Tensions are growing between the city of New Smyrna Beach and Volusia County over parking in off-beach parking lots.

The city was put on notice: stick to plans to charge drivers to park in those lots and risk losing some funding from the county.

It began when New Smyrna Beach city leaders claimed they needed financial help maintaining off-beach parking lots, like the one on Flagler Avenue, and decided to charge $10 to park.

That fee originally was for everyone, including county residents. Only New Smyrna Beach residents got free parking.

That parking lot, and two others in the beachside city, were built with what's called Community Redevelopment Agency, or CRA funds, provided by the county.

The county threatened to strip the city of CRA funding if they continued with plans to charge to park.

The city did an about-face Tuesday night, voting to let county residents park for free.

"Volusia County Council had taken the position that our CRAs might be in jeopardy if we chose to go forward and charging Volusia County to park at your parking beach lots," said New Smyrna Beach Mayor Jim Hathaway.

County Chair Jason Davis claims New Smyrna Beach cannot use CRA funds, which are tax dollars, then charge people, anyone, to park on the lots.

In fact, the city's about-face did not change county leaders minds about the city's CRA funds.

"Oh yes, those funds, that discussion is still on the agenda, it was advertise so yeah, we're still gonna continue with the discussion," Davis said.

Mayor Hathaway said he thought the discussion would go away once the city moved not to charge county residents.

But Davis said the parking lots are public and should remain free for everyone.

However, city leaders will forge on, installing kiosks that will charge out of county tourists to pay to park.

"That is the plan at this time, yes." said Mayor Hathaway.

Chairman Davis said New Smyrna Beach and its alleged misuse of CRA funds will be discussed during county council meeting Thursday.

He charges that city is the biggest violator when it comes to the misuse of CRA funds.

Even though the mayor said that's not true, he or other city leaders are not expected to attend the meeting.