The Council oversees all administrative functions of the city. The council is responsible for setting tax levies along with implementing a yearly budget, appointing all members of all affiliated committees, boards and commissions, and implementing and upholding all ordinances and regulations for which the City must follow.

The City of Lanesboro is a statutory Plan A, fourth class city of Minnesota with a weak mayor-council. Therefore, it is governed by four council members and a mayor. Council members have 4-year terms and the mayor has a two-year term. Every even year an election occurs for which the mayor is up for reelection and two council members are up for reelection.