Yikes $1,200!! Where's the emoticon with bugged out eyes and no smiley face!? I bet something's wrong, either error or broken line somewhere. What's your normal bill?
I don't think I would want to live in town, having your own well may come with possible pump replacement every ten to thirty or more yrs, maybe a pressure tank when you don't have the cash...but no water bill$.
We had to dig our well up last yr, 100 yr old house shallow well, jet pump in cellar. Pressure tank was bad...new one didn't help, bought new pump even though I didn't think it was it, wasn't. Had to dig the well up, buried well, wasn't fun did a lot of it by hand, didn't want to damage anything with my backhoe, only used hoe to dig around it and down so dirt didn't fall in it. . Line was plugged with sediment. Plenty of pressure now with new line, pipes a banging again.