(1) Except as provided in subsection (2) of this section, ten percent (10%) of the funds allocated to each county under the provisions of KRS 42.470 shall be allotted to the incorporated areas within the county based on the ratio that the population of each incorporated area bears to the total population of all the incorporated areas within the county; except that incorporated areas shall not be eligible for funds allocated to counties under the provisions of KRS 42.490 and 1980 Acts, ch. 394, sec.
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(2) If the amount of funds to be allotted to an incorporated area under subsection (1) of this section is less than twenty-five dollars ($25) in any given quarter, then the allotment shall not be made and the applicable funds shall instead be distributed to the county to which they were allocated under KRS 42.470.