Can you give a little more explanation on what you mean by not being able to zoom to the level you need? Is it that it does not allow you to zoom in close enough? Then it might be that you have the Map Unit of your map not set correctly. For example, if your map is in Decimal Degrees and you have the MapUnit of the map set to Meters, it is not going to allow you zoom in correctly.
When you say "the city can be zoomed out a lot which is not really required", I think that you mean that the city layer should not be displayed after you zoom out to a certain level. For this you need to set the ApplyZoomLevel correctly so that it does not apply all the way up to zoom level 20, but less than that.
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"The question is how can i zoom further? or shift the zooming levels so i can zoom further"
Can you elaborate a little bit on that question. I am not sure I understand it.
Also, I would recommend you check out some projects in the Code Community related to zoom levels and other zoom related issues. I think it will help you get a better grasp on that concepts.
code.thinkgeo.com/projects/show/124
code.thinkgeo.com/projects/show/111
code.thinkgeo.com/projects/show/128
code.thinkgeo.com/projects/show/49