When you're viewing a topic, take a look at the far right. You'll see the Transitions Pane. The second section down from the top of the pane is labeled Containing Topic. Click the "+" button to select the topic that contains the current one.
So let's say you have Ward1 that belongs to CityA. Select the Ward1 topic and edit it. On the right, click the "+" button. Then select CityA from the list and click OK. When you're back to the Ward1 topic, save it. You should now see Ward1 appear beneath CityA in the list on the left. Repeat for all wards to assign them to their appropriate cities.
You can do the same thing with cities, if you wish. You can make them contained by the country, continent, or whatever other grouping makes most sense to you.
Hope this helps!
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