A strong community viewpoint supported free 90-minute parking while the Inner City Focus Group and retailer businesses wanted 60-minute free parking.
The group's view was that 60 minutes was in keeping with statistics showing the average stay in parking spaces to be 35 to 45 minutes, and likely to encourage more parking space turnover.
The total cost of implementing the new parking plan is estimated to be $30,000.
Ahu Boutique owner Adrienne Whitewood said she was overjoyed with the decision.
"An hour is more than enough time for shoppers so the decision to go with our recommendation will mean more traffic turnover and increased store productivity."
She said the decision was common sense and was just a small part in the total revamp of the city.
"Parking is just one small detail in a much bigger picture of how we are working to make our CBD exciting, vibrant and engaging. This is just a sign of great things to come."
Capers and Pig & Whistle owner Gregg Brown was pleased with the outcome but said it was a hard decision to make.
"You can't get it right by everybody but we felt the 60-minute free parking was the best solution and took into account most users.
"People who do wish to stay longer can pay a token fee and park for up to three hours.
Taking away the 90-minute free parking will hopefully deter people from abusing it and jumping from one park to the next all day."
The committee's recommendations will now go to a meeting of the full council on November 12 for finalisation.
If adopted, the changes could be implemented ahead of this year's main Christmas shopping period.