The south King County town of Pacific will exist for at least another year.
KING-TV reports that the city council voted Wednesday to purchase a last-minute offer for insurance, which will allow Pacific to remain incorporated.
The town has been in turmoil all year because the insurance company had refused to extend its policy because it considered Pacific too much of a risk. City leaders say the company blames Mayor Cy Sun and $11 million in lawsuits against the city as a result of his actions.
The lack of insurance would have made city employees personally liable for their work.
City Council President Leanne Guier says the new policy comes at a higher cost and provides lower coverage, but it at the very least will buy time to keep the city functioning.