The City of Terrell operates under a home rule charter with a council-manager form of government.

The City Manager is the city's Chief Executive and Administrative Officer

The Administration Department oversees city activities, appoints department heads and employees, and makes recommendations to the City Council for action in matters concerning the City of Terrell. This department provides information for the Council, ensures the enforcement of city ordinances and state and federal laws, reviews and supervises departmental operations, manages city policies and regulations and, presents the annual budget.