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,` ~, <br />establishment as the 1970 Income Tax Revenues of the participating <br />community bears to the 1970 Income Tax Revenues of all partici- <br />pating communities. At the initial meeting of the Council of <br />municipal representatives, the Council shall determine the estimated <br />cost of such establishment and each participating municipality <br />agrees to forthwith contribute its share. In the event that such <br />estimate is inadequate, each participating community agrees to take <br />further action to supplement its contribution. Any fundsrnot <br />required shall be returned to the participating community or <br />credited against its future costs of collection, <br />B, The actual cost of tax collection shall be shared by <br />the participants in this Collection Agency according to the following <br />' formula: <br />1. The total cost of the Tax Collection Agency shall be <br />multiplied by a factor consisting of the number of trans- <br />actions processed for such participant as the same relates <br />to the total number of transactions processed by said Agency, <br />2. Total cost of the Agency shall be multiplied by a factor <br />consisting of the participant's percentage share of the total <br />receipts collected by the Agency. <br />3. Add step 1 and step 2. <br />4. The sum of steps 1 and 2 (step 3) shall be divided by <br />two and the figure so derived shall represent the partici- <br />pant's total cost. This formula may be exemplified by the <br />following equations: <br />St_ ep 1• <br />Total Cost x Nu__mber of Participant's Transactions = $ <br />Total number of Transactions <br />St_ ep 2• <br />Total Cost x Participant's Total Receipts _ $ <br />Total Agency Receipts <br />Step 3. Add step 1 and 2. <br />Step 4. Divide step 3 by 2 - Participant's Cost = <br />2 <br />- S - <br />