19 of those firefighters were killed in a wildfire in Yarnell almost two years ago.
The three families were granted benefits by the Prescott Public Safety Retirement System Board, but one of those cases was appealed.
The City Council decided Tuesday they would stop that appeal, and they would not appeal the rulings for the other two families.
"It's been a long, hard battle for not only the survivors and family members of the Granite Mountain Hotshots, but for the people of Prescott. I think this just lays another brick in the healing path for the City of Prescott and the families of the fallen hotshots," said attornet Pat McGroder.
The attorneys for the three families say they are glad the city council made that decision.