The City of Statesville operates under the council-manager form of government. The City Council acts as the legislative body in establishing policy and law and the City Manager handles the day-to-day management of the City organization. The Mayor and City Council serve part-time and are elected on a non-partisan basis. The Mayor is elected at-large (city-wide) for a four-year term and serves as the presiding officer at city council meetings and as the official head of the city for ceremonial purposes. The City Council appoints a professional City Manager, who serves as the Council's chief adviser, and the City Manager appoints the employees of the City.

The City Manager is the CEO of the City government and is in charge of the day-to-day operations of the City. When the City Council makes a decision on an ordinance, law, or policy, the City Manager is responsible for implementing those policies. The Manager coordinates the operations of all City departments and is responsible for the preparation of a proposed operating budget and its presentation to the City Council. This annual budget, as adopted by Council, provides funding, staffing, and general guidance to the City departments for the fiscal year.

The council-manager form has become the most popular type of local government in the United States in communities with a population of 5,000 or greater. North Carolina cities and counties helped pioneer the form and all North Carolina local governments of significant size operate under this form of government.