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One way to do this is to place a Doorway gadget at the end of your cutscene timeline, and set it to Exit.

Then make a new copy of your entire scene using Remix.
Delete the entire cutscene timeline in this copy, place a Doorway gadget in the scene and set it to Enter.

Then place both scenes in a Dream, and connect them in the right order: first the citizens, and then the playable level.

You can adjust the doorway transitions in their tweak menus, and make them as short or long as you like. If you want an instant transition, just set the in and out times to 0.

I quite like this way of connecting cutscenes to playable levels because it allows you to keep each scene/level clean for each part's purpose, rather than mixing everything - timelines, puppet action recorders, music timelines, etc - in one messy scene.