After razing a city, the city icon is not removed from the left side of the screen.

Also, mousing over the icon continues to show data for the nonexistent city.

(Clicking on the icon takes you to the demolition site)

The SS doesn't show the cursor, which is hovering over the last icon on the left (the razed city "Ramuest").  The tooltip for the razed city is shown in the bottom right.  The icon has just been clicked, and the screen shows the demolition site.

Edit: If you save, exit, and re-load, the razed city icon is gone.