(C) says, "Police departments are not justified in improving service to one segment of the community at the expense of other segments of the community unless doing so reduces the crime level throughout the entire area served."
The argument's conclusion is not about what police departments are justified in doing; rather, all it states is that people who waste police officers' time should pay a fine for the wasted time. Thus, we can get rid of (C).
Does this make sense? Let us know if you have any questions!