I think it’s a dangerous idea, at least as the policy was applied in this case, especially in terms of the harm it can do to others in the area, regardless of whether they’ve paid the fee.
In this case the fire spread to the adjacent property of an owner who paid the fee.
Other considerations could be:
What if there are explosives or a leaking gas line in the house of origin?
The air pollution from a Class A fire is bad enough, but there could be numerous hazardous materials involved that could create a toxic, drifting cloud, and just like fire, clouds of pollution aren’t concerned about whether a fee has been paid.
What if there’s a future event involving an escaped murderer and the police?
What if the murderer breaks into a house whose residents haven’t paid the police services fee? Will the police do nothing, even if the victims offer to somehow pay them to prevent being murdered?
When the police are pursuing a suspect, they shouldn’t have to stop to check billing records to see whether they’re financially authorized to deal with a deadly situation at one location or another.