//ViewModel

public class LocationDTO
{
    public IEnumerable<CityDTO> Cities { get; set; }
    public LocationDTO()
    {
        this.Cities = new CityDTO[] { };
    }
}

public class CityDTO
{
    public string CityId { get; set; }
    public string CityName { get; set; }
}

//Controller

Models.LocationDTO Loc = new Models.LocationDTO();
EF.LocationEntities locCtx = new EF.LocationEntities();

public Action Result Index() {
    using(locCtx) {
        var locResults    = (from q in locCtx.usp_GetAllCities()
                       Select new Models.CityDTO {
                       CityId = q.Id,
                       CityName = q.Name  });
        loc.Cities = locResults.ToList();
    }

    List<Models.CityDTO> citiesList = new List<Models.CityDTO>();
    Models.CityDTO city = new Models.CityDTO() { CityId = "-1", CityName = "Select City" };
    citiesList.Add(city);
    citiesList.AddRange(Loc.Cities.ToList());

    ViewBag.CitiesDropDown = citiesList;
    return view(loc);
}

//View

@{
    List<TestApp.Models.CityDTO> citiesList = ViewBag.CitiesDropDown;
    var cityItems = new SelectList(citiesList, "CityId", "CityName");
}
<div>
    Cities: @Html.DropDownListFor(x => x.Cities.SingleOrDefault().CityID, @cityItems)
</div>