There shall be allocated to each level of qualifying municipalities a portion of the funds appropriated for the purposes of this act, as follows:
Level I - 32.5% of the funds so appropriated;
Level II - 57.5% of the funds so appropriated; and
Level III - 10% of the funds so appropriated.
In allocating funds to Level II qualifying municipalities, there shall be additionally allocated any portion of the amount allocated to Level I qualifying municipalities which is not apportioned to those municipalities pursuant to section 6 of this act.