A model utopian society centered around strong Christian values that would serve as an example to the world
Explanation:
The notion of "a city set on a hill" is the idea of a perfect society or world that is based on Chris-like values which would serve as an example to the rest of the world.
The city means an utopian society, whereas being "set on a hill" is the idea of being an example for others to see and emulate.
