And they have pledged to try and raise the money themselves to get the mast at Daskett Hill re-located after the district council voted against footing the bill – of as much as £63,000.
Community leaders are now hoping to resume negotiations with Orange – which they claim they broke off last year on the district council's advice – to find a way forward.
Sheriff Hutton Parish Council Chairman Penny Bean said: "Ryedale Council may have given up on this, but we haven't."
The parish council has also rejected an offer of £2,000 from the district council for a community project as a gesture of apology and compensation.
Cllr Bean said parish council members who met last Friday evening – the day after an extraordinary Ryedale Council meeting had agreed the offer – were unanimous in their view that it was "inappropriate".
She said: "This isn't about the money, it's about getting the mast moved and the way Ryedale Council – its paid officers and elected members – have dealt with this whole matter. The parish council can't take them to the Ombud-sman but individuals can and they will.
"We've been misled, we've been lied to and our letters not answered. The issue has also become a political football and we're caught in the middle."
The saga began in November 2004 when Orange applied to the district council for permission to erect a mast at Daskett Hill. The council had to give its decision within 56 days – but missed that deadline by one day.
Orange declared it had deemed planning consent and installed the mast in October 2005. Villagers claim that was the first they knew of the plan because Ryedale had failed to tell them.
The mast has never been operational because in May last year, village objectors stopped contractors connecting it to the electricity supply.
Meanwhile, the issue bounced back and forth between council meetings and committees until last month when the authority received advice from the District Auditor – the public spending watchdog – and a barrister, that using council taxpayers' money to re-locate the mast would be unlawful.
At last week's extraordinary meeting the council agreed to release copies of the legal opinion to the parish council and mast protest group. There was disagreement over the amount of compensation to be offered to the village.
A "modest" sum of up to £2,000 was suggested by a public law solicitor consulted by officers but Cllr Edward Legard described that as "derisory". However his proposed award of £5,000 was defeated in a named vote and £2,000 was agreed by 16 votes to six.
Meanwhile Cllr Gill Stilwell, who represents Sheriff Hutton on the district council, called on the authority to challenge the government's planning policies for phone masts and alert other councils about any risks they pose.