Claremont

The design at-a-glance:

Colors taken from the American flag
Blue band at left represents the Connecticut River forming the town's western boundary.
Three stars represent the town's natural resources, history, and people.
13 stripes not only mimic the American flag, but also represent the town's population (~13,000 for several decades), mill buildings, and Stevens High School.
In the negative (white) space between the blue band and red & white stripes can be seen the letter 'C' for Claremont