This is an interesting case.  The person whose house burned down did not live in the city.  All city residents are covered, as their taxes pay for the fire department.  The residents outside of the city limits need to pay the fee in order to support the fire department.  This is only fair.  The person refused to pay the fee, and so he reaped what he sewed.  It wasn't just that he failed to pay, he refused to pay.

Now, what I supposed could have happened, is that the fire department puts the fire out, and then charges the guy for the full cost of doing so.  ie, full cost of labor, rental of equipment, etc.