Takeaways:
FLY SMART!!! IF there is any type of event that is organized regardless of the event size (or that of your community) EXPECT the area around/above to be a no fly zone, TFR or not. Even smaller communities are very aware of security risks from UAVs (even small ones) that violate the security perimeter of an event. DO NOT expect a TFR for a localized event where non-UAV air traffic is not a factor; if it is not intended to impact commercial/GA it will not get filed (too many local events - would overload the FAA system).
Police are getting guidance in securing these types of events from perceived threats based on a risk assessment model, which unfortunately now has to include threats from vehicles on the ground and in the air. DON'T be part of the problem... Creating a safe space for a community event is not a simple task and many factors need to be evaluated, including balancing the rights of the community around it. Some of these policies come from groups like the International Assoc. of Chiefs of Police (IACP) and National Fire Protection Association (NFPA) who I have the good fortune to work with and help write some of this stuff. Many of these policies are driven by domestic terror events that have recently affected non-traditional targets (running/walking events, community fairs) in smaller communities. Sad, but a fact of life.
IF you want to try and capture overhead video and can do so safely, reach out to organizers or police early and offer to share your video with the event organizers or community and see if you can obtain official permission to do so. Some communities would welcome the opportunity to have your video or still shots, again IF they can be captured safely and legally. It NEVER hurts to develop relationships and ask, all you can get is a NO (but you will have established at least some face time with local officials).
With the proliferation of more UAVs, many in the hands of "platinum card pilots" (don't confuse me with facts, I bought it and I am flying it how I want to) there will be additional oversight, so expect and anticipate it.
The encounter between police and the person posting ended happily in this case, but that will not always be the result, so learn from this post. NO one here needs to get charged with anything, risk their equipment being seized, or go thru being taken into custody until it can be determined if you present a threat or not. Fortunately, this occurred in a city with a professional and measured response, other areas might not yield the same results. If you choose to test the system, do not be surprised at the results.
Fly safe and have fun, and respect the rules and the safety of those around you. The public safety providers protecting your community are working hard to better understand and manage risk associated with UAVs. Be an advocate for the UAS/UAV flying community and help them to learn by flying responsibly and being a professional (fly by example).