All seven council members voted in favor of the $63.3 million budget.
It's a no tax increase budget that includes $95,000 for police overtime.
John Evans, city council finance director, says he's pleased with the hard work by the administration.
"The city knew there were financial challenges they had to meet with the budget and I think they did a great job putting it together," said John Evans, Erie City Council. "We tore it apart line by line over about a ten hour period but when we were done we had to concur it was the right budget for the city for 2013."
Evans says it's a sufficient budget this year but he wants department heads to start figuring out ways to save in the future.