The City was organized in 1857 as a Home Rule Charter City and currently operates under the Mayor-Council form of government. The City Council is composed of a Mayor and five Council members. The Mayor is elected at large and serves a two-year term. Five Council members are elected to serve overlapping four-year terms.

The City Clerk is appointed by the City Council and is responsible for administering the various city departments, implementing Council policies and coordinating the preparation of the annual City budget.

The City currently employs 15 full-time and 12 part-time persons in the following departments: administration, public works, library, planning and zoning, economic development, police and ambulance services. The City's police department includes 5 full-time and 4 part-time officers. The volunteer fire department has 26 firefighters.

The City of Chatfield provides a broad range of services, including public safety, public utilities, and cultural and recreational opportunities. Although each department reports directly to the City Council, the staff utilizes a team approach to developing solutions and delivering services to the community