By Christina B. Farnsworth. Costs are up, and revenues generated from tourism, sales, and income taxes are down. Fiscal conditions in America's cities are in decline. "Two-thirds of city officials believe that their cities will be less able to address financial needs in fiscal year 2003," so says the annual research report (released in August 2002) of The National League of Cities. New York Mayor Michael Bloomberg, for example, presented a plan that called for $4 billion in tax increases and $2 billion in service cuts.