All politics is local. Every citizen of a city is also a citizen of the state. "Local" is a demarcation drawn where ever it's convenient for the speaker. A smaller group should not be able to supersede the superior authority at the larger polity's expense.

In this case, the locally-optimal choices cities are making is having deleterious effects on the quality of life of the citizens of the state as a whole. It is perfectly reasonable for the state to therefore act.