If you don't take into account Jing Yan's reconciliation with City Lord Yuan Jihu, then the considerations of the Liu Family Patriarch indeed are quite comprehensive.
The Liu family not sending anyone to Zhang Min's funeral might displease the Zhang family, but a subsequent explanation from the Liu family would surely be understood by the Zhang family. This way, it would not upset City Lord Yuan Jihu, nor would it cause too much backlash from the Zhang family.
The Liu Family elders also agreed with the patriarch's decision.
In Haofeng City, families sharing the same concerns as the Liu family weren't few.
Another first-class family, the Hu family, also made the same decision not to send representatives to Zhang Min's funeral.
As for those second-tier powers roughly equal to the Zhang family, or even smaller and weaker families, most also didn't plan to send representatives to Zhang Min's funeral.