CITY OF BARSTOW
CITY MANAGER’S OFFICE
TO: Mayor and City Council
FROM: Rochelle Clayton
SUBJECT: Barstow Cemetery District – Summary
DATE: May 19, 2026
STAFF RECOMMENDATION:
Staff is recommending to, 1) 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 2) In the interim, continue supporting management through available in-kind services, as appropriate.
Key Findings from the LAFCO Special Study
These findings are from the last Study – Accepted and filed January 17, 2024. District has experienced long-standing challenges with governance, management, and finances identified in multiple LAFCO reviews (2008, 2020, and 2024). Frequent turnover of board members and general managers weakened institutional knowledge and operational stability.
Lack of (prior) government management expertise among leadership contributed to operational deficiencies.
District previously operated without legal counsel until 2020, creating risk exposure. Audits identified major internal control weaknesses including lack of accounting policies, asset tracking, purchasing controls, reconciliation of funds, and financial closing procedures. District operates three primary funds: General Fund (operations), Endowment Fund (perpetual care), and Pre‑Need Burial Fund (future burial services). General Fund has historically operated with recurring deficits and owes significant balances to the Endowment and Pre‑Need funds.
Structural challenges exist for public cemetery districts due to legal restrictions on revenue generation and competition with private cemeteries.
Public cemeteries must maintain older plots that predate endowment requirements and therefore generate limited maintenance funding.
Changes Since the Previous 2008 and 2020 LAFCO Reviews
The District replaced its former General Manager and brought in new leadership, including a new General Manager and administrative staff, with support from an experienced cemetery district consultant.
The Board of Trustees has experienced significant turnover, which LAFCO describes as creating a “reset” in governance and operational practices. The District has begun implementing internal policies and procedures and strengthening administrative operations.
Financial accounting systems have been upgraded, and previously outstanding financial audits have been completed, improving financial oversight. The District has started digitizing cemetery records and plot mapping, improving recordkeeping and accountability.
New grounds staff have been hired to support cemetery maintenance and operations. The City of Barstow and the County of San Bernardino are partnering on landscaping improvements, including installation of curbing and other enhancements to improve the appearance and marketability of the cemetery.
Despite these improvements, the 2024 LAFCO study notes that long-term financial sustainability challenges remain, largely due to structural revenue limitations and ongoing operating costs.
Key Findings from the Cemetery Analysis
Annual operating costs estimated between $360,000 and $480,000. Reliable annual property tax revenue is approximately $170,000, leaving a significant annual funding gap.
Revenue relies heavily on burial plot sales, but demand has been inconsistent. Cemetery has approximately 1,080 plots remaining with an estimated value of $4.59 million. District must sell approximately 40 at-need plots annually to break even and 68–80 plots annually to maintain financial stability.
Actual sales trends have been significantly lower, with some months recording only one sale.
National burial trends are shifting toward cremation, reducing long‑term demand for traditional burial plots.
Historic water supply challenges resulted in high irrigation costs, with water bills historically reaching $10,000-$20,000 per month. Currently, with desert landscape, the water supply bills now average $1,500-1,900 a month.
District identifies $125,000 and $300,000 deferred maintenance and landscaping improvements needed immediately to risk further degradation of the cemetery. These are one-time investments.
Combined Key Takeaways
Governance instability and administrative capacity issues have contributed to operational challenges.
The cemetery operates with a structural financial deficit between operating costs and reliable revenue sources.
Legal restrictions limit the ability of public cemetery districts to diversify revenue streams. Declining burial demand and national cremation trends affect long‑term cemetery financial sustainability.
Deferred maintenance and infrastructure investments are needed to improve cemetery conditions.
Cemetery operations require specialized management expertise including trust fund management, pre‑need contract administration, regulatory compliance, and long‑term maintenance planning.
ATTACHMENTS:
1. FY2026 Cemetery District Budget
2. FY2025 Cemetery District Budget
3. FY2024 Cemetery District Budget
4. FY2023 Cemetery District Budget
5. Special Study of the Barstow Cemetery District; LAFCO 3266, January 17, 2024