The Smart Cities data and applications need to replicate, as faithfully as possible, the state of the city and to simulate possible alternative futures. In order to do this, the modelling of the city should cover all aspects of the city that are relevant to the problems that require smart solutions. In this context, 2D and 3D spatial data play a key role, in particular 3D city models. One of the methods for collecting data that can be used for developing such 3D city models is Light Detection and Ranging (LiDAR), a technology that has provided opportunities to generate large-scale 3D city models at relatively low cost. The collected data is further processed to obtain fully developed photorealistic virtual 3D city models. The goal of this research is to develop virtual 3D city model based on airborne LiDAR surveying and to analyze its applicability toward Smart Cities applications. It this paper, we present workflow that goes from data collection by LiDAR, through extract, transform, load (ETL) transformations and data processing to developing 3D virtual city model and finally discuss its future potential usage scenarios in various fields of application such as modern ICT-based urban planning and 3D cadaster. The results are presented on the case study of campus area of the University of Novi Sad.