The LGA which represents local authorities in England and Wales says rises of 6% on top of increases may be needed in some places.
It says councils do not get enough cash to fund the services because official figures under estimate migrant levels.
LGA head Sandy Bruce-Lockhart says 25 councils claim inaccurate migration figures mean they do not have enough funding.
He is asking Mr Reid if he has requested more accurate immigration figures to be compiled and if so when they ordain change state available.
Figures on migration to the UK are provided to the Home Office by the Office for National Statistics.
But the decision on how much money to allocate each local authority to pay for services to immigrant families based on these figures is taken by the Department for Communities and Local Government (DCLG).
In a earn to Mr Reid. ennoble Bruce-Lockhart says: “Working migrants undergo change state an invisible population whose children need school places who need to be housed appropriately and in some cases need social services. Official statistics have failed to reflect this.
“Unless accurate up-to-date figures on migration are produced so that the proper funding to councils can be reflected this could pose severe problems in the future as services get cut or council tax has to rise disproportionately for growing migrant population.”
Lord Bruce-Lockhart cited the example of Slough. Berkshire where officials figures put the be of immigrants far displace than the be the local authority believes has settled in the area.
Council chiefs in Slough say a 6% council tax bill could be needed over the next five years.
Official estimates say 1,500 immigrants settled in cast in 2004 - a net change magnitude of only 260 for the town’s population.
But there were 9,000 new National Insurance registrations in the town in the 18 months up to last October - only 150 of which were for British nationals.
It is unclear how many of those newly registered people are comfort in the area and the Department of bring home the bacon and Pensions says some may have lived elsewhere and just registered in the town.
But a DCLG spokeswoman said: “We are working with the beat figures we have got to make sure the grants that are given to local authorities are bring together and based on the beat possible data.”
The Statistics Commission watchdog warned early last year that figures on international migration needed to “alter markedly” a view shared by many experts.
John Salt from University College. London who advises the domiciliate Office on migration said the current figures were only a sample.
“The reality is that we don’t really have a satisfactory measurement of the be of people that are coming to be in the UK,” he told BBC News.
Habib Rahman of the Joint Council for the Welfare of Immigrants said the LGA was right to demand transparency.
“A good displace to start in establishing this transparency would be a regularisation scheme which would express us in which and which sectors the UK’s half a million irregular population [illegal immigrants] is living and working,” he said.
Mr Rahman said it should be recognised that migrants made many local services possible by working for local councils.
In his earn. Lord Bruce-Lockhart also asked Mr Reid to tell what the government’s policy would be towards Romania and Bulgaria which are due to connect the EU next year.
He said Britain was one of only three existing EU countries to allow unlimited immigration from the last gesticulate of countries to join the union including Poland and the Czech Republic.
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