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Federal and state aid to city governments has declined to the lowest level since 1967, providing only about 20 cents of every municipal revenue dollar in fiscal 1986-87, the Census Bureau said.

By contrast, in the mid-1970s, federal and state aid to city governments rose to a high of 32 cents of each dollar in city revenues, the bureau said Sunday.According to the Census Bureau report, "City Government Finances in 1986-87, federal aid to cities in 1987 amounted to 5 cents of each dollar in revenue while state aid provided another 15 cents.

Federal revenues peaked at 13 cents in 1978, while state revenues reached 22 cents per dollar in 1975, said the Census Bureau, a branch of the Department of Commerce.

"While the federal contribution to cities has continued to fall in recent years, state government aid has leveled off," the Bureau said.

The combined federal and state aid to cities was more than a full cent less in fiscal 1987 than fiscal 1986, dropping from 21.7 cents per city dollar to 20.5 cents per dollar, the study found.

Overall, city revenues across the nation totaled about $169 billion, up nearly 7 percent over 1986, the Census study said. About one-third, or $55 billion, came from local taxes.

Property taxes continued to be among the largest city government tax sources, the report said, bringing in $27 billion or 16 percent of all revenue.

Sales and income tax together accounted for about $28 billion, municipally owned utility charges also brought in about $28 billion and fees charged for specific municipal services brought in $19 billion, the report said.

At the same time, however, city spending in fiscal 1987 rose nearly 8 percent over fiscal 1986, the report said, rising to $164 billion.