Sparsity factor established in city aid formula, and money appropriated.

HF 1129 modifies Minnesota's city aid formula to include a "sparsity adjustment" based on population density. Cities with very low population density - those with fewer than 150 people per square mile for cities over 10,000 residents, or fewer than 30 people per square mile for smaller cities - will receive an additional $200 in their aid calculation. This adjustment directly affects qualifying cities by increasing their state aid amount under the new formula, which takes effect for aid payments starting in 2026. The bill does not change the total annual aid pool but alters how it is distributed based on geographic spread.