The size of the village, town, or city is not an indication of the amount of Christmas spirit within the citizens.
When I was a child, our village of less than 400 residents celebrated large. Green garlands were strung across Main Street from one light pole to another. An evergreen tree was decorated with lights. Children were treated to a Christmas party (Saturday before the Big Day) at the local theater. Santa made an appearance and handed out brown paper bags of treats. The school held a holiday concert. Churches opened their doors for special programs.
Like many puzzle artists, this one takes us back a number of decades to show an idealized scene. (Do puzzle buyers like horses? Are they nostalgic?)
I see a Community Center, City Hall, and the largest house in town all decked out for party time. How would you caption this one?