i have driven both city 2001 model and my friends baleno 2004 ..
i can surely say go for city as it has a very comfortable drive .. better suspension ..very nice road grip ..good ac
On the other hand ..baleno has a chilling ac but like u mentioned ..if it starts giving problems ..u'll b in big trouble ..my friend's baleno didnt start for without any start..then he had to change its card costed 25000 plus labour..
so i prefer ..try finding a city in good condition rather than baleno !