Molalla is a full-service city operating under the council-manager form of government. The Mayor and six Councilors serve as the City’s policy-making and legislative body. The City Council also hears and decides land-use appeals and adopts the City’s annual budget. The Mayor serves a four-year term; Councilors serve four-year terms. All are elected at-large.

The Council appoints and evaluates a professional city manager who serves as the executive head of city government, with responsibility for preparing and administering the annual budget, supervising the City’s departments, advising the Council on policy issues and current developments, implementing Council decisions, and providing leadership to managers and staff in achieving Council goals and priorities.

The City Council meets the second and fourth Wednesday of each month at the Molalla Adult Center, 315 Kennel Avenue. Council meetings are videotaped.

The City has an annual budget of $19 million and a workforce of 45 full-time employees The City operates its own police department, a municipal court, water, wastewater and storm water utilities, street operations, planning department, a park system, and public library.