In exchange for the payment of back occupation taxes, the city will reduce the reach of its occupation tax on telecommunications.
The money will go into the city's cash reserve fund.
The city sued both Verizon and another telecommunications company, Windstream, last year, contending that a city audit showed the companies owed several years' worth of occupation taxes on some services, products and equipment.
The companies have said they had different interpretations of what the city's occupation tax law covered.
The Windstream lawsuit is expected to go to trial in September.
