The town had very few cultivator residents, there was a Sect Overseer which the mortal governor and ministers answered too, a man at the fifth stage of the third realm, and a bare handful of early third realm officers in the hundred and fifty strong permanent garrison of first and second realm soldiers.
I don't know if ~7% of the population is "very few" Ling Qi.
Interesting though. This is our first explicit look at cultivator population ratios. Slightly higher than I expected, but it also seems like this town is the main garrison for this region. The other minor villages probably have much fewer cultivators.
Also: stop tsun-ing at the poor boy Xiulan..