My brother bought a really, really, really nice house in the mountains of Utah. It had a man-made stream/waterfall that ran from just above the house down to the foot of the stairs leading to the garage - probably 250' or so. The water collected at the bottom of the "stream" and was pumped to the top - completely closed system.
He ran it that first month he had the house - peaceful noise. Then the $13,000 water bill showed up. Thirteen grand for 30 days water usage. Surprisingly it was correct. Apparently a ton of water evaporates in the dry climate.
He never turned it on again.
Tom - someone just realized you hadn't been paying a bill, so they guesstimated your past usage and sent the bill - seen it a million times. Thirty-five bucks a month is about right for your usage. I don't know if you have recourse or not.