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..... COUNCIL OF GOVERNMENTS FUNDS Sec. 42. (a) Of the funds appropriated by Section 5 of this act to the Department of Administration, the sum of nine hundred ninety thousand dollars (5990.000) for the 1989-90 fiscal: Year and nine hundred ninety thousand dollars (5990,000} for the 1990-9l fiscal year shall only be used as prO,,-i61ed by this section. Each regional council of government or lead regional organization is allocated an amount up to fifty-five thousand dollars (S$5,000) each fiscal year. with the actual amount calculated as provided in subsection (b) of this section. (b) The funds shall be allocated as follows: A share of the maximum fifty-five thousand dollars (,S$5.000) each fiscal year shall be allocated to each county and smaller city based on the most recent annual estimate of the Office of State Budget and Manaeement of the population of that county (less the population of any larger city within~ that county)' or smaller city, divided bv the sum of the total population of the region (less the population o~ larger citiesYwithin that region) and the total population of the region living in smaller cities. Those funds shall be paid to the regional council of governments for the region in which that city or county is located upon receipt by the Department of Administration of a resolution of the governing board of the 'county or citY requesting release of the funds. If any city or county does :not so request p~,yment of funcls by June 30 of a State fiscal year, that share of the allocation for that fiscal year shall revert to the General Fund. ' " (c) A council of governments may use funds appropriated by this section only to assist local governments in grant applications, economic development, community development, support of local industrial development activities, and other activities as deemed appropriate by the member governments. (d) Funds appropriated by this section may not be used for'payment of dues or assessments by the member governments, and may not supplant funds appropriated by the member governments. (e) As used in this section "Larger City" means an incorporated city with a population of 50,000 or over. "Smaller City" means any other incorporated city.