Unless that's how this town worked. More commune than full-on set-up. Or, like Bright assumes, this place was created to look like a town. And that place just looks like a school. Principles weren't always a thing. Hell, the principle could've conducted business in the Town Hall for how big the town is.

( He knows it's unlikely. )

Or, the leader of the school was the leader. Town leader. Cult leader. I think it's not just one missing puzzle piece.