Or maybe...
Meredith has a smaller population than Gilford, but has a much grander (and larger) police station. Either we're being cheap...er...frugal compared to Meredith, or they need a bigger police station because they have more crime...or the same amount of crime but the miscreants are bigger in size/stature, or the miscreants are 'upscale' so they need an upscale police station.
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