The council has donated £200 in parking fees to the Glossop Christmas festival organisers after a free parking notice was put up behind a parking meter.
High Peak Borough Council offered motorists the chance to park for free all day in all three council-owned car parks in the town on Saturday, in honour of the Christmas lights switch on.
But the sign at the municipal buildings car park was obscured by the meter, prompting many residents to pay and display as normal.
Cllr Godfrey Claff, executive member for regeneration, said: “It is unfortunate that some people paid to park on Saturday when we were offering free parking to support local businesses in Glossop. The free parking was well publicised in advance of the day and around nine signs were located at each of the car parks. Despite this, a total of £218 was taken in parking fees on Saturday and we’ve agreed to donate this to the volunteer group who organised this year’s successful event, to help them with next year’s arrangements. I hope that all those who attended on Saturday enjoyed the day and I’d like to thank the organisers for their hard work.”