This was taken over the summer during Fiesta, which is an originally Italian tradition which is basically a big carnival. There's one particular town near where I live that celebrates St. Peter's Fiesta in a big way. That's why the flags were up (also, it's near the end of June, so it's time for preparation for the 4th). There were also carnival rides, including a Ferris Wheel, and cotton candy, stuff like that. I don't know of anywhere else in the US that celebrates Fiesta in the way we do, but I'm sure there must be some!
Well, it is based around a major Catholic holy day (the feast day of Saint Peter and Saint Paul). Also, given Saint Peter's extensive patronage list (which includes the Papacy, cobblers, masons, and people who study the measurement of time, of all people), I'd imagine that more than just the people of that town get creative ideas for festivities.
...now I want to see how horologists (said people who study time measurement) would celebrate St. Peter's Fiesta. That sounds like it would be interesting, especially if clockpunk got involved.