WASHINGTON -- Municipal budgets are strengthening for a second straight year, and many officials anticipate further gains in 1995, said a report released yesterday by the National League of Cities.

"Some signs of improvement can be found not only in actual 1993 ending balances and projected real growth in 1994 revenue forecasts, but also in city finance officers' optimism," said the group's annual survey of fiscal conditions in more than 500 cities.

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