just a small statement to all those blaming toyota for more glitches quality wise than honda, its because they sell almost twice as much and inorder to keep up with the demand, things are done in a hurry. We all claim that we would rather get a better car 10 days later than the said delivery time but the fact of the matter is. Everyone rushes the company for quick delivery, hence the quality issues. As for the OP, City isn't a decent option, highly uncomfortable. Mileage wise, both are the same if driven on a light foot with a single or dual passenger. WIth 4 on board, city gives better mileage, but if you do plan to mostly run with 4 on board. Better off with a 1.5 city or a 1.6 altis.
Long story short, on paper, city wins, in practicality, corolla all the way, the choice is yours because we all can bicker for years to come but your priorities is something if brought forth. All would then agree what is best for you.