(1) (a) The county treasurer shall segregate from the county motor vehicle fund and designate as the "city road fund" 50% of the net license fees derived from the registration of motor vehicles whose owners reside within the limits of any incorporated city or town.
(b) At the end of each month, the county treasurer shall pay to the appropriate city treasurer the fees held in the city road fund.
(2) The balance of the county motor vehicle fund remaining after segregation of the city road fund shall be transferred to the county road fund.