07/30/2012 11:05 EDT | Updated 09/29/2012 05:12 EDT

Residents of Saskatchewan rural municipality get 20 per cent tax hit, not 36

CORMAN PARK, Sask. - The taxman is still hitting hard the residents of a rural municipality in Saskatchewan, but with a stick instead of a sledgehammer.

On Monday, the council in Corman Park agreed to reduce a planned 36 per cent property tax hike to just 20 per cent.

Reeve Mel Henry says that`s still not likely to be welcomed with open arms, but he says council is doing its best to help people out.

He also warns that reducing the property tax hike will have consequences.

He says it will mean less road maintenance and fewer pavement improvements than planned.

He cautions residents to lower their expectations.

"We are fast approaching the point when our reserves are not going to be enough to meet our demand," says Henry. "We still have financial trouble. That day of reckoning is going to come."