On January 14, 2026, the City of Backus completed a utility rate study. The study showed that rate adjustments are necessary to cover rising operational, maintenance, and infrastructure costs and to ensure reliable water and sewer services now and into the future.

The monthly base rates are not changing:

• Water base rate: $27.50
• Sewer base rate: $41.00
• Water tower fee: $5.00

What is changing is that the 4,500-gallon usage threshold is being removed. Bills will now include the base rates plus:

• $3.50 per 1,000 gallons of water used
• $3.43 per 1,000 gallons of sewer usage

The new rates go into effect in May 2026.
     The first bill showing the increased rates will be the bill you receive in June, which reflects water usage from May.

Because your bill is now based on water usage without a minimum gallon threshold before overage charges are incurred, the total amount due may vary from month to month depending on how much water is used.

Possibly.

• City online utility billing auto pay:
  Payments will automatically adjust to the correct amount due each month.
• Auto pay set up through your bank (fixed amount):
  If your bank sends a set amount (such as $73.50), this amount will likely no longer be correct. You may need to update or cancel that payment to avoid underpayment.

You can estimate your new bill using information already printed on your monthly utility statement. Please note that this is only an estimate. Your actual bill may be higher or lower from month to month, as it is based on actual water usage.

Step 1: Find your water usage
At the top of each monthly utility bill, your water usage is listed in gallons used for the month.

Your monthly bill can fluctuate depending on your water usage. To estimate an average monthly bill:

1. Review your last 12 months of bills.
2. Add them together.
3. Divide by 12.
   This provides a reasonable monthly average, though actual bills may be higher or lower depending on usage.

*Note: You could do this by looking at a few months of recent bills, adding the total gallons used together and dividing the by the number of gallons used by the number of bills you are comparing.

If you do not have previous bills to reference, or if you would like help reviewing your account, you may contact City Hall by phone, email, or stop in during business hours. The City Clerk is happy to assist you.

Step 2: Calculate your usage charges
Take your average number of gallons used and:

1. Divide by 1,000
2. Multiply that number by:
• $3.50 to calculate your water usage charge
• $3.43 to calculate your sewer usage charge

Step 3: Add the base rates
Add your usage charges to the monthly base rates:

• Water base rate: $27.50

• Sewer base rate: $41.00

• Water tower fee: $5.00

Step 4: Estimate your total bill
Add all amounts together. The total is an estimated monthly utility bill under the new rate structure.

Because this estimate is based on average usage, your actual bill may be different than the amount you have estimated and may still fluctuate from month to month depending on how much water is used.

Important note for commercial accounts:
Commercial accounts will also be charged tax on the water usage portion only. Sewer usage charges and Tower base rates are not taxed.

If you have questions, need help locating your usage information, or would like assistance estimating your bill, please contact City Hall:

📞 218-947-3221
📧 [email protected]
📍 112 King Street South, Backus, MN 56435

If you’re on auto-pay, here are some options to ensure your payment covers your bill:

Auto-Pay & Payment Options at a Glance

Important: There is a 7-day grace period after the bill due date before a late fee is applied. Monitoring your account, even with auto-pay, ensures you stay current and avoid fees.

Late fees increased in January 2026 from $5 per month to $10 per month for each month a bill is late.

To avoid late charges, auto payments should be scheduled to arrive by the 15th of the month.

Bills being dropped off, mailed or made at City Hall should be made by the due date listed on the bill. Utility billing is not completed on the same day each month, so due dates may fluctuate slightly. Scheduling automatic payments to arrive by the 15th helps ensure timely receipt regardless of billing date.

Tip: If you know you cannot make your payment in full by the due date, contact the City Clerk to set up a Payment Arrangement and avoid late fees.

• As long as you follow the agreed-upon Payment Arrangement, late fees will not be charged.
• Important: If you miss a payment or break the terms of your Payment Arrangement, the arrangement becomes VOID and late fees will be applied for each month your account carries a delinquent balance.

In the past, we were more lax on late fees however, the city would disconnect services for accounts that were past due. At that time, additional fees for disconnection and reconnection were charged, which encouraged timely payments. 

Council voted to change this its process on delinquent accounts in 2025 and no longer disconnects services for unpaid accounts. Because the city relies on these payments to operate, there still needs to be an incentive for customers to pay on time which is why the late fees were reviewed and increased.

Late fees will be enforced consistently, which may be why you are seeing fees applied that were not common before. This is the city attempting to ensure that all residents are paying their bills on time, even though service disconnection is no longer used as a deterrent.

Tip: Staying on top of your bill, setting up a payment arrangement if you are unable to pay on time—using autopay through the Online Portal, making deposits, or seeing what methods your bank offers other than a fixed monthly payment amount—can help avoid late fees and make managing fluctuating bills easier.  

This is commonly simply a timing issue.

Because billing dates fluctuate, utility bills sometimes need to be generated before or on the current bill’s due date. When this happens, if your payment has not yet been received and applied to your account, it can appear as though two months are owed.

This often occurs when:

• A check has been mailed but has not yet been received
• An automatic payment is scheduled to draft but has not yet hit the city’s account
• Or the payment was not dropped off to city hall prior to bills being printed

If you know your payment was mailed or is scheduled through autopay, this is typically just a timing issue between billing and payment receipt.

Billing Timing Example Scenario:

• Your utility bill is due by April 20
• You mail your payment on April 15 or have an auto payment scheduled to draft on or after April 20
• Utility billing needs to be completed on or before the due date (April 20)

Because billing was completed on or before your payment due date (April 20), or was not yet received or applied, your May bill may show:

• The previous bill balance (due April 20), and
• The newly billed charges

This can make it look like you are being billed for two months, even though your payment is already on the way.

Once your payment is received and applied:

• Your account balance will update correctly
• The appearance of “two months due” will resolve

Important: A bill is only truly late if it is stamped “PAST DUE.”
If you know your payment was mailed or an automatic payment is scheduled, this is typically simply a timing issue between billing and payment receipt. As long as the payment is received within the 7 day grace period you will not incur a late fee charge.

Residents with an online utility portal account can view payments and balances online. You can be set up with an online portal account even if you do not wish to be set up on autopay or ever plan to make a payment through the city’s online portal.

• • To sign up for a portal account click here: How to set up your Online Portal - used to view your bill, make payments or set up automatic payments
  • For Instructions on how to set up your online portal account click here: How to set up your Online Portal - used to view your bill, make payments or set up automatic payments

If you are unsure about your bill, if a payment has been received, or you need help with setting up your online portal please know that the City Clerk is happy to assist you. 

If your bill looks higher than expected or appears to show that your account is Past Due, follow these steps before worrying:

☐ Check the bill for a “PAST DUE” stamp
If the bill is not stamped PAST DUE, it is not considered late.

☐ Think about recent payments
Did you recently mail a check or schedule an automatic payment? If so, your payment may still be in transit or waiting to be applied.

☐ Check your online utility account (if enrolled)
Payments and balances may update after billing is completed if a payment is made prior to you recieving your bill.

☐ Review your auto pay setup
Make sure payments are scheduled to arrive by the 15th of the month and that the payment amount made covered the entire bill amount you made a payment on.

☐ Allow time for processing
Mail delivery, bank processing, and posting payments can take several days. Making timely payments on your account will help avoid late fees.

• If you are set up with an automatic payment it should draft each month, consider the date you receive your bill compared to the date your payment is set to draft.
• Billing dates are listed on each monthly bill, if the current bill date listed is on or before the previous month’s due date this is more than likely just a timing issue.

☐ Contact City Hall if you are still unsure
The City clerk can confirm whether a payment has been received. (Note: pending payments made through auto pay or processed online cannot always be seen immediately, in these cases you will be advised to check with your bank to verify if the payment was made.)

City of Backus – City Hall
📞 218-947-3221
📧 [email protected]
📍 112 King Street South, Backus, MN 56435

Need help or have questions?

• Call: 218-947-3221

Listen to updates on the City Voicemail and be sure to leave a detailed message so your call can be returned providing you with the help and information you need.

• Email: [email protected]
• Visit: 112 King Street South, Backus, MN 56435

Regular City Hall Hours: Monday – Wednesday & Fridays from 9am-3pm.

Tip: Check the sign posted on the door if you arrive during business hours and City Hall is locked.

Whenever possible, changes to hours due to offsite meetings, training, errands, remote work, holidays, etc. are posted on the front door of City Hall—located in the middle of the top row of postings on the door.

(Note: At times there are unexpected changes to the work schedule and other staff may post notices in a different spot, so please look at all posts for information.)

These changes are generally also noted on the City Website (City Calendar) and are reflected on the City’s voicemail.