The Hailey City Council acts on behalf of citizens to maintain the wellbeing of the city through its legislative functions. The council's authority and responsibility encompasses the following:

• Reviews, revises and adopts city ordinances, including any ordinance necessary to preserve and maintain the public health.
• Acts as a body, not as individuals. A majority of the council constitutes a quorum; a question before council is decided by a majority of the members present.
• Confirms all mayoral or managerial appointments.
• Develops Findings of Fact Conclusions of Law in Land Use matters and approves guiding plans, studies and documents.
• Approves contracts.
• Examines accounts and prepares annual budget.
• Approves all claims against the city prior to payment.
• Determines all contributions for city fringe benefits.
• Orders payments of final judgments against the city.
• Certifies property taxes within the city for general revenue or special purposes.
• Transfers the surplus in one fund to the credit of another fund.
• Utilizes short-term borrowing in anticipation of federal or state grants.
• Establishes authorities, agencies and committees as needed. The mayor appoints members and the council confirms.

The City Council meets twice per month, excluding special meetings which may be called by the council or mayor from time to time.