This was the result of Swiss direct democracy within the small town in question - essentially, an idea from citizens, voted on by citizens within the relevant area.
So actually more "free" than most countries can even imagine.
Not that I agree with GP but there is a lot more to freedom than "the decision was made by a vote". "Freely chosen policy" is not inherently the same as "free policy", it's just (often) a good ingredient. Of course there are plenty of countries which can't seem to get any aspect of freedom down so your comparison still holds true regardless.