There's a new three-year collective agreement between the Toronto Police Service and the city, which will see a jump in salaries by about 10 per cent, making Toronto cops the best-paid officers in the province.

But Toronto Mayor David Miller has warned that the cost to taxpayers will be the equivalent of a two per cent tax hike. 

Terms of the deal were released Thursday after months of discussions involving an arbitrator.

The Police Services Board has endorsed the deal, but Miller said the financial terms will put "significant pressure" on the city.

"The city of Toronto is a tough place to be a police officer. They deserve to be fairly paid," Miller told reporters at City Hall on Thursday morning. 

"It is, however, very significant costs for the city and the Police Services Board.  By 2011 the police budget in Toronto will be $1 billion.  This award itself will create a pressure in next year's budget equal to about a two per cent tax hike," he said.

If the contract is ratified by the end of 2010, a first class constable will earn $81,249 per year, which will be $238 more than a first class constable in the Peel Regional Police force.

A new Toronto police officer earns about $50,000 per year.