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.... COUNCIL OP GOYE'BN~BNTS ~UHDING SeC. i§l.. {a) Of the funds appropriated by Sectioe of this act to th~ Department of NUtural Besources and £O~munitv Development, ~.ne hundred a~ety thousand dollars {$99~'000) ..shall only b~ used as provided by this section. -- Each r~qio'nal council of government 'is a~ated an amount up to fif~y~fiv~ ~oasand dollazs ($55,000) with ~e actual amount calculated as provided in subs~tion (b} of th~ section. {b) ~he 'fu'uds ~811 ~ allocated as follows: I Share of the marimum 'f~ty-five thousand dollars (S55,000) shall be allocated to each county and smaller city ~ased on th~ 1980 Pederal Census population of that county (less the .population of ~ later city wi~ that co~ty) or smaller city, divided the sum of ~e total population of ~e .region (less the popUla~oa of larger cities within that region) and th6 ~otal ~pulation of the region living iu saaller cities. Population totals shall be accordin9 to the 1980 Fedezal Census, ~xcept to account for' cites incorpo~ted since, the zeturn of that census; and in s~h ~se, the most recur ~nual estimate of. the of State Budget ~d Haaagemeut shall be used.. Those funds shall be ~id to ~e regional counc~ of gov~um~t to which-that cowry or city belongs upon receipt by the Office of a resolution of the gover~ng b~rd of the county or city requesting release of the funds.. If any city or county noes not so request payment of- funds b~ J~e 30, 1987, that shoe of the allocation shall rewezz to ~e Genezal ~und. (c) A council of governments may use funds appropriated by .th~ section only to assist ~ocal governments ~n grant applications, economic develop neat, coamunity developaen~, support of loc~ industrial deve[opaeut activities, and other activities as deeaed .appropriate by t~e aeab~r' (d) Funds a~=Opriate~ by this sec~io~ ~ay not be used for payment of d~s or assessmen~ by the ~mb~r gov~=nm~nts~ and ~F not supplant f~ds appropriate~ by the ~ember incorporated city with a population of 50,000 or over. "S~aller City" ~e~ns any uther incorporated city..