Wakefield Council made £1.18m from parking charges in 2013/14 - 18 per cent more than the previous year.
A new report carried out by the RAC Foundation found that the council made the money from on and off-street parking.
The RAC added up income from parking charges and penalty notices, then deducting running costs.
But Wakefield Council leader Peter Box commenting as a member of the Local Government Association’s economy and transport board, said the report was “misleading.”
He said: “This misleading RAC Foundation report is yet again based on the deep-rooted misconception that councils make a profit from on-street parking. On-street parking revenue is spent on paying for parking services and any surplus is spent on essential transport projects.
“This report shows parking fines have gone down and that councils have become more efficient at running parking services. This means councils can spend the extra income on filling potholes and tackling the £12 billion repair bill to bring our roads up to scratch.
“The RAC also fails to take into account a likely growing demand for parking from traffic increases on our roads and the important role parking services play in reducing congestion and keeping pedestrians and motorists safe as a result.
“Councils are on the side of hard-pressed motorists. The reality is that the average motorist is paying 30 times more to Whitehall in charges and taxation each year than they do to their town hall through parking.”