They are asking if you are enjoying your visit to the city.
Or, if you have recently moved to the city, they are asking if your experience so far has been good.
Possible answers, depending on your circumstances:
Wonderful! What a great city. I'm having a great time!
Everything has been great!
I'm learning more about the city every day.
I'm not used to the noise yet, but the food has been terrific.
To be honest, I miss my little town, but I will learn to love it here, I'm sure.
Or whatever you feel about the city.