Toronto city councillors have frozen their pay for 2011.

Councillors voted 39-3 to reject a proposed 2.6 per cent cost-of-living adjustment that would have hiked their annual pay to $102,209. As a result, they will continue to receive the 2010 rate of $99,619.

The mayor’s salary was also frozen at $167,770.

The decision is in line with Mayor Rob Ford’s austerity program and is expected to give council more leverage to seek wage restraint in upcoming bargaining with unionized civic workers.

“We have to lead by example,” said Councillor Doug Ford. “We can’t be giving ourselves increases and asking everyone else to cut.”

Ford said the only surprise was it took about two hours of debate before the increase was rejected.

However, one of the three councillors who voted for the cost-of-living increase said he and his colleagues deserve it.

“We work endless hours serving our community,” said Councillor Joe Mihevc. “I think we as city councillors need to stand up and say, ‘You know what, we deserve fair compensation for the work that we do.’ ”

Mihevc said councillors voted the other way because they don’t to be offside with the mayor or they fear losing the next election.

He suggested that the savings — about $118,000 — should go to student nutrition programs, and council sent that suggestion to budget committee for consideration.