The motion, approved in a 39-3 vote, suspends Ford's authority to appoint and dismiss the deputy mayor and his executive committee, which runs the budget process. In a separate vote, the council voted to give the deputy mayor authority to handle any civic emergency.
Most city councilors are frustrated by Ford's refusal to step aside since he admitted last week to smoking crack, but they lack the authority to force him out of office unless he is convicted of a crime.
"If I would have had a mayor conducting themselves the way I have, I would have done exactly the same thing," Ford said.
The mayor and his brother voted against the motion.
"Folks here don't have the moral authority," Doug Ford said. "It's not up to you folks to make this decision, it will be up to the people."
In the span of a few hours yesterday, Ford used obscene language to deny that he pressured a female employee for oral sex, admitted that he had driven while drinking and then apologised for his vulgarity and said he was seeking professional help, though he refused to give details. Although Ford has admitted to excessive drinking and using and buying illegal drugs, he and his family have insisted he is not an addict and does not need rehab.
Ford's troubles began escalating in May when news reports first surface of a video showing him smoking crack. After month of evading the question, the mayor admitted to having smoked crack when Toronto police announced they had obtained the video during the course of a massive drug investigation that has ensnared a close friend of Ford.
