In 2008, financial setbacks endangered the city's viability. The economic crisis severely affected tourism, which generates the most revenue, and just when the city had finalized an $18 million settlement over a property lawsuit. As the municipal budget was typically $14 million or less, city fathers had issued bonds with annual payments of approximately $1 million over 25 years. As a result of these obstacles, the threat of bankruptcy was very real. Dozens of meetings were held in to decide where to cut the budget and finally 75% of municipal employees were laid off and replaced with contract workers. Employee contributions toward retirement benefits were also raised. The city council sought to regain the money paid in the settlement, believing that it should have been paid by the city's insurers. A lawsuit against the insurers was decided in 2013 and the insurer ordered to pay the city more than $13 million; the Association of Bay Area Governments partially covered the costs of the lawsuit.