The City of Stanford uses a Mayor and Council form of government as prescribed by the Kentucky Revised Statutes. There is a Mayor and six (6) Council Members.

With the Mayor/Council form of government, the Mayor administers the ordinances as passed by the Council. The Council recommends and enacts the laws as ordinances of the city. The city's budget is recommended by the Mayor to the Council and after review may pass and/or change then pass the Budget as an ordinance. The City's fiscal year is from July 1 through June 30 each year.

The Mayor must be at least twenty-one years of age and have resided in the city limits for a period of one year before his/her election. The Mayor is elected for a four year term at the November General Election. The Mayor is paid an annual salary of $20,000.00. There are no term limits for the Mayor.

Each Council Member must be at least twenty-one years of age and have resided in the city limits for a period of one year before his/her election. The Council is elected at large for a two year term at the November General Election. The six council candidates receiving the greatest number of votes in the election are elected. Each Council Member is paid an annual salary of $1,800.00. There are no term limits for the Council Members.

The city's current population, based on the 2000 census, is 3,420. The city is a fourth class city. The city is a member of the Kentucky League of Cities (KLC) and the Bluegrass Area Development District (BGADD).