This movie was about a guy that died and was looking for a city in a graveyard. He had a friend that had cut his face off, well was more of a guide. His girlfriend went looking for him and found him. She died as well and joined him. Seems like that town was called Meridian or something.

Sounds like 1990's Nightbreed.

Nightbreed - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Nightbreed)