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$10,000,000 annually[, whichever is greater, shall be
paid by each licensed gaming entity operating a licensed
facility located in that city,] less any amount up to
$5,000,000 received pursuant to a written agreement with
a licensed gaming entity executed prior to the effective
date of this part, shall be distributed to the city,
subject, however, to the budgetary limitation in this
subparagraph. In the event that the city has a written
agreement with a licensed gaming entity executed prior to
the effective date of this part, the amount paid under
the agreement to the city shall be applied and credited
[to the difference between 2% of the gross terminal
revenue and the $10,000,000 owed under this subparagraph
if the 2% of the gross terminal revenue is less than
$10,000,000. If 2% of the gross terminal revenue is
greater than the $10,000,000 required to be paid under
this subparagraph, the credit shall not apply. The amount
of gross terminal revenue required to be paid pursuant to
the agreement shall be deemed to be gross terminal
revenue for purposes of this subparagraph.], up to
$5,000,000, to the slot machine license operation fee
owed under section 1326.1. The amount allocated to the
designated municipalities shall not exceed 50% of their
total budget for fiscal year 2003-2004, adjusted for
inflation in subsequent years by an amount not to exceed
an annual cost-of-living adjustment calculated by
applying the percentage change in the Consumer Price
Index immediately prior to the date the adjustment is due
to take effect. Any remaining moneys shall be [collected
by the department from each licensed gaming entity and]
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