Corman Park Reeve Mel Henry presides over a special council meeting. (Kathy Fitzpatrick/CBC)

A proposed property tax hike of 37 per cent was rolled back to 20 per cent in the Rural Municipality of Corman Park on Monday.

Taxpayers in the municipality, which encircles Saskatoon, expressed shock earlier this month over a planned tax increase of 37 per cent following on the heels of a 17 per cent hike last year. One resident, Garry Derenoski, told CBC News that the most recent increase would have added another $1,300 to his tax bill.

But at a special meeting of the municipal council on Monday the proposed 37 per cent tax increase was reduced to 20 per cent.

About 8,400 people live in the RM. And while council is holding this year's tax increase to twenty per cent, there will likely be big increases in the years to come.

"The RM is in financial trouble. Many years of no tax increases and depleting reserves has left us in a very unstable position," said Reeve Mel Henry.

One councillor wanted to replace the tax hike with a one time levy of $200 per residence but that idea was defeated.