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source of income. Both dry land and irrigated crop production is practiced with irrigation the predominant type. Principal cash crops raised include corn, wheat, sugar beets, sorghums and alfalfa. The major source of income in the livestock industry is from beef cattle. TIle 1 arges t agricu 1 tura 1 Colorarlo Coop grain elevator tural products are marketed. wi th II peRk of 35 during the in 1972 were $4,603,000. employer in Holly is the Southeas tern where the majority of the area's agricul- The coop normally employs 20 persons harveat season. Total sales for the coop Although seasonal, an important component of the economy of Holly is Gateway Downs, a horae racing track located ahout a mile west of town. The 10 days of racing held each spring attracts a large number of tourists and produces a parimutuel handle of about $380,000. In 1970, a 60 unit "Rest Home" for the elderly was established in Holly. The home provides employment for some residents and is appar- ently economically sound wi th 100 percent occupancy a t the pres ent time. Holly is located on U. S. Highway 50, Colorado S tate Road 89 and the main line of the Atchison, Topeka and Santa Fe Railroad. Although the railroad does not provide passenger service, it does provide freigh t service for agricultural products. The water, sewer and electrical distribution system serving. Holly are municipally owned. Electrical power is provided to Holly from the city of Lamar, Colorado. Telephone service is provided by Mountain Bell and heating fuel by the People's Gas Company. Holly has a modern achool system providing excellent educational facili ties for grades I through 12. Future development in the !lolly area will probahly depend on agri- cultural growth and the cattle industry. Although expansion of crop- raising acreage is not anticipated. net income is expected to increase through improved farming techniques that increase per acre yields. Cattle feed lot operations are expected to increase as cattle marketing areas develop in the west and 'southwest parts of the country. There is one feed lot, capable of handling up to 10,000 head of cattle, located one mile north of !lolly. Although the lot is not in operation at present, it is on the market and has the potential of becoming an important element in the economy of !lolly. PROBLEMS & NEEDS STATUS OF EXISTINC pLM!S AND U1PROVEHENTS The nrip.illBl wild Horse Creek channel, which passed thro'Jgh the center of Holly, was cleaned llnd the levees rl'l'uin.d in 1951 by the Corps of Engineers under authority of Sectiori 2 of 1937 Flood Control Act. Subsequently, the !lolly Flood Control, Drainage and Sanitation 5