We know you must be having numerous thought about it. But trust us that when you know the solution to the problem you will regret for not thinking in that direction.

You just have to ask the person, "Which way is your city?" Just follow the path he directs you to and you will reach Truthcity. How?

Well if the person belongs to Liarcity, he will speak lie and will tell you the direction of the Truthcity and if the person belongs to Truthcity, he will tell the truth and will lead you to the Truthcity. 

Isn't it simpler than you thought?