The agreement also requires Barlow to pay $7,000 for investigation and prosecution costs.
The two counts will be reduced from felonies to misdemeanors if he successfully completes probation. Jail time remains a possibility.
Other charges against Barlow have been dismissed.
Deputy Mohave County attorney James Schoppmann told The Salt Lake Tribune Monday that Barlow's sentencing is scheduled for March 1.
The case also includes 31 felony counts against Colorado City Town Manager David Darger. According to Schoppmann, 26 of the felonies are for misuse of public funds and five are for conflicts of interest. The case has not yet been resolved and prosecutors are currently in plea negotiations with Darger, Schoppmann added.
No hearings are scheduled in the case because defense attorneys are currently involved in an unrelated trial. Schoppmann said a hearing will be planned when both sides become available.
The Salt Lake Tribune contributed to this report.