The town is so small and has very little crime so there really is no need for their own police dept. The policing will be taken over by the county sheriff’s dept. which will likely also recruit the laid off officers.
The vast majority of towns and small cities in Maryland do not have their own police. Some are covered by county police. The hood ones by county sheriff.
My county, who’s sheriff celebrated 250 years as a department this week only has three cities with police.