POULSBO — The city of Poulsbo has approved a $1,600 settlement amount with Cingular Wireless.

Poulsbo’s lawyers are moving ahead with settlement negotiations that could have the city pay $1,602. The council approved the number at its April 1 meeting.

“We are just giving them the authority to continue with settlement talks with this amount of money,” said Debbie Booher, finance director for the city of Poulsbo.

Cingular had sought a settlement of $21,000, well above the council-approved $1,602.

The law firm of Ogden Murphy Wallace is representing a consortium of Washington cities, including Poulsbo, that have been sued by Cingular Wireless. The wireless provider sued cities after it was charged local taxes for its service; federal regulations prevent the taxing of Internet services. Cingular alleged it was locally taxed for the Internet service it provided.

The consortium of cities in the lawsuit are now negotiating various settlements with the wireless company.