Just more than a year after hitting city water and sewer customers with a large rate increase, McMinnville officials will be considering a smaller one Tuesday.“I am going to propose that we raise rates 1 percent,” said Water and Sewer Committee chairman Jimmy Bonner. Going into effect in January 2014, customers inside the city limits were given a 19 percent increase and those outside the city limits saw a 30 percent increase. The increase generated close to $1 million in additional revenue to cover $854,388 the state said the department needed for future upgrades.The city’s Water Department is an enterprise system, meaning user rates, fees and charges must be sufficient to meet the actual costs of providing water and sewer services.