If the weapon is associated with magic, then it could have some part of sinister spell lingering on it that wasn't exactly noticeable, but puts anyone around it on edge. Practically, the spell might have been cast to unnerve opponents or discourage thieves from stealing it. That's the kind of...
I think most of the citizens, even the ones not in the militia, would have learned to fight pretty well, for protection if the army failed. They would most likely be very paranoid and suspicious of anyone that was from outside the city, and maybe even of people int he city they didn't like.
I use a lot of mythical creatures, and usually incorporate some legends about un-seen creatures as well. It adds to the mistique of the world, I think. Like once I used the Kogohpuk (which was an actual mythic creature in ancient times in the Bering Strait) as a legend that terrified the locals...