Is there away to develop terrain data based of City GIS contour data?
Here is a document with some explanation of interpolation methods to create a digital terrain model: https://www.esri.com/news/arcuser/0704/files/interpolating.pdf
For contour lines you should use Topo to Raster—Help | ArcGIS Desktop . This requires desktop (ArcGIS Pro or ArcMap and the Spatial Analyst extension)
Retrieving data ...