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. . . COLORADO WATER CONSERVATION BOARD Pole Mountain Dam Wamsley Cattle Company January, 1993 Introduction Pole Mountain Dam is located in Jackson County approximately 20 miles southwest of Walden, Colorado. The Dam is located on the North Fork of Mexican Creek a tributary of Big Grizzly Creek. The Dam was originally constructed in 1964 and has a decree to store 1200 acre feet of water. The reservoir and dam is on the restricted list and presently is restricted to zero storage. Project The Dam has slides on the upstream slope. The owner must extend the outlet structure, replace the gate, flatten the upstream slope and replace and augment the riprap. The owner has extended the outlet works and needs only to flatten the slope and replace the riprap to complete the project. The cost to complete the project is estimated to be $45,000.00. Project Financing The Wamsley Cattle Co. is a 30 year old Colorado family owned corporation. The corporation is presently in a Chapter 12 bankruptcy filing in which the major creditor is the Federal Land Bank. The bankruptcy is a result of falling cattle prices in the early 1980's. The cattle company has redirected its operations and is now doing custom farming, small construction projects and selling hay and straw produced on corporate owned farm land, operating income in 1992-1993 amounted to $177,137:t, net operating income was $55,000:t after making a principal and interest payment to the Federal land Bank of $42,000:t. The corporation's financial problem stem from 1980's cattle price fluctuations. The corporations net income in each of the last 3 years has increased annually. The corporation requests a $45,000, 10/0 loan for 25 years. The payment for 25 years at $2043.30, would be $51,081.50. The corporation's accountant advises that there is ample income to cover this amount. The corporation is viewed as a good citizen of Jackson County and the family reputation is without blemish. The $45,000 investment would increase consumptive use of water by 1200 acre- feet/year in a water short area at a cost of $37.50/acre-foot. The 1200 acre-feet of water would increase production of hay on 1200 acres by 900 ton. Value of this product at present price would be $72,000.