A $200,000 bond anticipation note with Gunnison Valley Bank has been approved through a resolution by Gunnison city officials. The money will be used to finance a water improvement project.

The note will be payable Dec. 31, 1992, but may be paid at an earlier date, pending sale of water revenue bonds to the Utah Board of Water Resources. The bond anticipation note carries an interest rate of 9 percent.The city will install new water collection, storage and transmission facilities and add improvements to the culinary distribution system that is currently serving Gunnison residents. Revenues from the sale and distribution of water will amortize the bonds that will be sold, officials said.