Joint Special Meeting
CC/BFPD/Odesa/Harvey House
06/16/26 06:00 PM
City Manager Department
Rochelle Clayton
Report
Doc ID: 6430
AGENDA ITEM
AGENDA MATTER:
ANALYSIS OF THE LOCAL AGENCY FORMATION COMMISSION'S (LAFCO) 2024 REPORT ON THE
BARSTOW CEMETERY DISTRICT
EXECUTIVE SUMMARY:
The City of Barstow has reviewed the 2024 Local Agency Formation Commission (LAFCO) Special Study, a supplemental Cemetery District Analysis, and the District’s recent operating budgets to evaluate the long-term sustainability of the Barstow Cemetery District.
The review found that the District has made significant progress in addressing historical governance, administrative, and operational challenges identified in previous LAFCO reviews. Improvements include leadership changes, completion of audits, implementation of financial controls, digitization of records, staffing enhancements, and ongoing beautification efforts supported through partnerships with the City and County.
While these improvements have strengthened operations, the analysis indicates that long-term sustainability challenges remain due to structural revenue limitations, reliance on burial plot sales, increasing operational costs, changing burial trends, and deferred maintenance needs.
Staff is not recommending governance changes, consolidation, dissolution, or assumption of District operations by the City at this time. Rather, staff recommend continuing the current partnership approach while monitoring future growth, development trends, and District performance. A re-evaluation is recommended within three to five years as anticipated development occurs throughout the community.
DISCUSSION:
It is important to note that the purpose of this analysis is not to evaluate the current performance of District management, but rather to assess the long-term structural and financial sustainability of the District based on available data, industry trends, and previous LAFCO findings. Staff recognizes and appreciates the efforts of the current Board of Trustees, management team, and employees in implementing operational and administrative improvements.
The 2024 LAFCO Special Study identified historical challenges related to governance, management continuity, financial controls, and operational capacity. The study also acknowledges that the District has made substantial progress in addressing many of these issues through leadership changes, improved business practices, completion of audits, implementation of policies and procedures, record digitization, and staffing improvements.
Despite these improvements, long-term sustainability concerns remain. The Cemetery Analysis estimates annual operating costs between $360,000 and $480,000, while reliable annual property tax revenue remains approximately $170,000. The difference must be offset through burial plot sales and related service revenues. The analysis further found that the District has approximately 1,080 burial plots Joint Special Meeting
CC/BFPD/Odesa/Harvey House
06/16/26 06:00 PM
City Manager Department
Rochelle Clayton
Report
Doc ID: 6430
AGENDA ITEM
remaining, with an estimated value of approximately $4.59 million. To maintain long-term financial stability, the District must consistently sell approximately 68 to 80 plots annually; however, historical sales trends have frequently fallen below that threshold.
National burial trends continue to shift toward cremation, reducing demand for traditional burial plots and creating additional long-term uncertainty for public cemetery districts. The analysis also identified deferred maintenance and landscaping improvements estimated between $125,000 and $300,000 that are needed to improve cemetery conditions and long-term marketability.
A review of the District’s FY 2024-25 and FY 2025-26 budgets supports these findings. Property tax apportionment remains the District’s most reliable revenue source at approximately $170,000 annually, while total projected revenues range from approximately $380,000 to $388,000. Annual expenditures are budgeted between approximately $382,000 and $411,000, demonstrating the District’s continued dependence on burial service revenues to maintain operations. While recent budgets reflect improvements in financial management and a narrowing of the operating deficit, the District remains dependent on burial service revenues and continues to face long-term sustainability challenges identified in both the LAFCO Study and Cemetery Analysis.
Staff’s review focused on long-term sustainability and did not identify a recommendation for dissolution, consolidation, or assumption of cemetery operations by the City. The City and the Cemetery District are separate public agencies with distinct governance structures, operational responsibilities, and financial obligations. While the City remains committed to partnering with the District through available in-kind support and collaborative improvement efforts, staff believes it is appropriate to continue monitoring the District’s progress and reassess long-term sustainability as future development and growth occur within the community.
FISCAL IMPACT:
There is no fiscal impact associated with receiving and filing this report. The City currently provides limited in-kind support to the District and may continue to do so, as appropriate and subject to available resources. Any future financial assistance or expanded support would be evaluated separately and presented to the City Council for consideration.
RECOMMENDED ACTION:
1. Receive and File the Analysis Report of the Local Agency Formation Commission's 2024 Study of the Barstow Cemetery District; and
2. Re-evaluate the City’s and District’s long-term sustainability in three (3) to five (5) years, taking into consideration anticipated growth and development trends; and Joint Special Meeting
CC/BFPD/Odesa/Harvey House
06/16/26 06:00 PM
City Manager Department
Rochelle Clayton
Report
Doc ID: 6430
AGENDA ITEM
3. Continue supporting the District through available in-kind services, as appropriate.