Bug#282754:

[Nick Sillik]

I also noticed this behavoir, and it is therefore reproducable and most
likely widespread; upon re-picking a location however this disappeared,
replaced by what it should say, and what it has always said
(Philadelphia).

I noticed this only when upgrading from gnome-applets-2.6.x to
gnome-applets-2.8.1-1. My assumption is that this is a difference
somewhere in the configuration settings between the two versions.
Unfortunately I have neither the time nor the energy to bug-hunt this in
the code right now.