It's the maximum amount allowed by state law to settle a lawsuit.
Originally Bush sued for 2.5 million dollars for being unfairly fired.
The City of Prineville decided not to fight the case in court. A press release said the city's insurance provider and their attorneys strongly recommended the city settle the claim.
City officials, on advice of attorneys, say they are not going to comment on Mr. Bush or this settlement other than to say -- they are pleased this case is now behind them and they can move forward with new leadership in the police department.
Bush was on paid administrative leave for nearly a year before he was fired this summer.
The city accused him of misusing flex time in his two jobs with the city and in the Oregon Army National Guard.
Oregon law does not allow a local government to pay more than $666,700 dollars in lawsuits against government entitites.