I see a warning:
DEPRECATION WARNING: Base#after_update has been deprecated, please use Base.after_update :method instead. (called from <class:City> at /home/petrushka/webdev/my_app/app/models/city.rb:4)
What should I write instead
def after_update .... end
You should write the following:
after_update :your_custom_method # macro-style
at least you can pass a block instead of a method:
after_update do |model| model.name = model.name.capitalize unless model.name.blank? end
more details here: http://guides.rails.info/active_record_validations_callbacks.html (select rail documentation)