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3D models of urban areas have found use in modern world such as navigation, cartography, urban planning visualization, construction, tourism and even in new applications of mobile navigations. With the advancement of technology there are much better solutions for mapping earth's surface and spatial objects. 3D city model enables exploration, analysis, management tasks and presentation of a city. Urban areas consist of terrain surfaces, buildings, vegetation and other parts of city infrastructure such as city furniture. Nowadays there are a lot of different methods for collecting, processing and publishing 3D models of area of interest. LIDAR technology is one of the most effective methods for collecting data due the large amount data that can be obtained with high density and geometrical accuracy. CityGML is open standard data model for storing alphanumeric and geometry attributes of city. There are 5 levels of display (LoD0, LoD1, LoD2, LoD3, LoD4). In this study, main aim is to represent part of urban area of Novi Sad using LIDAR technology, for data collecting, and different methods for extraction of information's using CityGML as a standard for 3D representation. By using series of programs, it is possible to process collected data, transform it to CityGML and store it in spatial database. Final product is CityGML 3D model which can display textures and colours in order to give a better insight of the cities. This paper shows results of the first three levels of display. They consist of digital terrain model and buildings with differentiated rooftops and differentiated boundary surfaces. Complete model gives us a realistic view of 3D objects. © Published under licence by IOP Publishing Ltd.