Complex sentence: Nearly all of this money was funneled back into the police force, which almost exclusively dealt with traffic violations and so essentially existed to fund itself--the 60-resident village had as many as 14 policemen, with the Village Council wanting more.
Split into simpler sentences: Nearly all of this money was funneled back into the police force, which almost exclusively dealt with traffic violations and so essentially existed to fund itself. The 60-resident village had as many as 14 policemen, with the Village Council wanting more.