The group was in the red after their 2006 festival and owed the city approximately $100,000.
Organizers have been paying off installments each year, but Saturday at the annual Pride Picnic, the group's board of directors presented Mayor Ed Murray with the final $15,508 check.
"It's so amazing," Adam McRoberts with Seattle Pride said. "It's been such a process over the last 8 years to really get us to where we are today."
Seattle Pride has since restructured and organizers say they are better prepared for the costs associated with future events.