Keighley town councillors have voted to accept an 8.8 per cent increase in the council's precept.
The decision on the 2009/10 budget followed a heated debate in the town hall, during which some councillors described the increase as "a disgrace", "immoral" and "unethical".
The increase was proposed by Finance Committee chairman Cllr John Philip, and equates to a charge of £23.50 on homes in the benchmark Band D category. This compares with a charge of £21.59 for the 2008/9 financial year.
The rise will allow the council to raise an extra £30,000 for the coming year.
Cllr Philip said the increase was necessary to enable the council to continue delivering its current level of service.
However, Cllr David Samuels said: "This is a disgrace for Keighley. The precept should be cut not increased." Cllr Ron Beale agreed, saying: "Eight point eight per cent is unethical, immoral and unprofessional".
Other councillors argued the increase was needed to cope with rising costs which are not under the town council's control. Cllr Joyce Newton warned that in future the council would be expected to fund its own elections.
Cllr Tony Wright said groups such as the council needed money to help stimulate the local economy.
A total of 14 councillors voted in favour of the recommended budget, with five voting against and three abstaining.
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