Plan I: evacuate all the poor people from the more elevated parts of town, build your palace and rich friends' houses up there. For preference out of brick. Nice wide streets, aqueduct water service, sewer. Surround this precinct with stony zen gardens, plazas, stone basilicas and so forth. Life is golden! Let the poor people build their wooden hovels down below. Learn to play the tibia utricularis and when the town burns down, get down there and buy up the land from the dispossessed; sell some on speculation; build more wooden apartment blocks and charge rent on the rest. Occasional fires are good for forests and cities alike. Burn out the dead wood, so to speak.
Well, this plan avoids major fires up there on the Palatial Hill where it's important, eh wot?
Plan IJ: tile roofs and cladding, especially along the perimeter of a block or precinct. In conjunction with relatively wide streets, this should keep many fires from spreading far. Blowing cinders that land on the roof will cool and cause no great harm. Wide streets (at least between blocks & precincts) will protect neighbouring buildings as well.
Plan IIJ: urban sprawl. Build several small citylets in close proximity, perhaps surrounded by farm land or orchards and with the civic infrastructure at the centre. When Mrs. O'Leary's cow burns down one residential precinct, the others, owing to their distance from one another, will be left intact.
Plan IIIJ: Hobbiton. Build your city near the water source, but up in the hillsides above. Dig smials and line them with wood panelling. Impossible for a fire to spread from one house to another, on account of the intervening earth. Round doors optional.