During its first year of operations Council created the groundwork for the running of the new municipality – carrying out valuations and assessments of property and setting rate levels, classifying unoccupied lands for rating purposes, preparing estimates for works programs, establishing finance and improvement committees and setting up bank accounts – £500 being the initial sum required to pay salaries, rent and "other necessary expenses to bring the Council into working order".

The new council was also occupied with more immediate practical matters such as purchasing furniture for the chambers –  including "a table, ten chairs, and two forms", candlesticks from Iredale & Co. and stationary from William Moffat. The design of a seal for council was executed by Messrs Sands & Kenny and was "greatly approved" of when it was tabled.

A committee to draw up by-laws for the municipality was formed in July and standing orders of council were approved in August.

A map of the municipality was commissioned which was varnished and mounted in September. Council decided that rates could be paid at the chambers on Tuesdays and Fridays between 4pm and 7pm.

The Council dealt with its first nuisance in September: a complaint concerning "a most disgusting nuisance existing in certain premises near the junction of Moncur and Wallis Streets’ consisting of ‘large accumulations of manure and supposed deposits of nightsoil, dirty pig styes, and night-carts with the soil dripping from therein". This complaint resulted in Council’s first summons against Mr James Stockbridge.

Council estimated that £3000 was necessary for council’s works program. The first road works carried out in the municipality was the repair of Piper (Queen) Street between Ocean Street and Old South Head Road in November.  At the same time council resolved to appoint a foreman of works to be employed at three pounds per week. The successful applicant was to be a "good rough mechanic" and a "working overseer".

One of the last resolutions made by Council for the year 1860 was that in cases of employment of un-skilled labour preference was to be given to the residents of the municipality.