West Yorkshire Fire Authority has made more than £12 million in efficiency savings over the last three years, auditors said.
The latest inspection letter from the District Auditor reports that the authority has "again demonstrated sound financial management by living well within its means, continuing to deliver significant efficiency savings and achieving excellent value for money."
In February, councillors agreed a record-low 3.9 per cent precept rise for 2008/9 but found an extra £1m to expand work in critical areas like fire safety and training, a spokesman said.
Bradford Councillor Valerie Binney, who is chairman of the authority's audit committee, said it was "encouraging" to be "patted on the back" but she said it was important that savings were be invested back into in front-line services.
She said: "We take a fair degree of pride in having low costs and high standards. It takes good management to invest the public purse wisely."
West Yorkshire is now one of the best rated fire authorities in the country, according to the auditor's report.
It praised the serviec for "performing well in all areas of service delivery and particularly strong in prevention, protection and emergency response".
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