Brierley Town Council was forced to take out £1.3 million in loans to cope with the Janet Cooper’s fraudulent activity, for which she has been jailed for eight years.
1,187 people turned out to vote, with 983 voting in favour of the council and only 202 voting to retain it.
A report will be shown to Barnsley Council at a meeting on 30 July, who will then hold a vote to decide if it will fund services currently paid for by the parish precept.
Sir Stephen Houghton, leader of Barnsley Council, said: “Only Barnsley Council can take a decision on this issue but the people of Brierley and Grimethorpe have spoken. I’ll be taking a motion to full council on 30 July recommending that our officers work with Brierley Town Council to produce a report with a strategy, key actions and timetable for the abolition of the town council and civil parish. I expect that this will go to full council in September 2015.”