Small city names are like a shortcut to character development. If your story is set in 'Sunnydale', it might imply that the people there are generally positive and warm - hearted. It gives the reader a starting point for imagining the personalities of the characters who live there. And it can be a great way to start building the world of your story, making it more immersive and engaging for the readers.
They can also create a unique atmosphere. Take 'Stonebridge'. Just the name makes you think of an old - fashioned small city with a stone bridge in the center, which can be great for a historical or mystery story. It gives the story a distinct backdrop that can influence the plot and the characters' experiences.
Small city names can add authenticity. For example, if you use a name like 'Pineville', it immediately gives the reader a sense of a small, perhaps rural place. It helps set the scene.