That's still the same problem though. If nobody pays the town is still going to be out money even if it's possible to collect $3500. And the reason they don't put out the blaze and then just charge if someone doesn't have insurance is because they won't be able to collect.

How do you deal with freeloaders in society?

Definitely not by letting them or their belongings burn down.

At least with the $35,000 after the fact fire service fee they can attach a lien to the house. Of course if it's a smoking husk there might not be $35,000 in market value at the real estate closing table.

The town was paying for a fire department anyway. The additional fee was for people outside the town.

Meanwhile, governments have excellent was of collecting on low-four figure debts secured by real estate.

The problem is that the municipality is a subordinate gov't within the county. They have no leverage over people outside the municipality, and basically had to have a court fight for every uncollected fee/fine, which rapidly ate all the money that could be collected... if the person living almost tax free on unincorporated land in a mobile home had the money to be collected.