McMinnville officials have settled on a 20.5 percent increase in water and sewer rates to satisfy the state and cover pending upgrades within the department. Water and Sewer Committee members Jimmy Bonner, chairman, and Mike Neal voted for the increase Tuesday night. Alderman Billy Wood voted against it.Wood says he is OK with a 20 percent increase for non-city residents who are connected to the city’s water supply, a lower increase for city residents, and allowing the department to keep the money it pays to the city in lieu of taxes annually.“I think we could do it at 15 percent,” said Wood.