So are you going to sue the police department for wrongful arrest? Depending on the laws is your area, on the surface it sounds like you have a good case.
Congratulations!
Your baby just got his college education fund, courtesy of the taxpayer.
Sue them until it hurts.
It is unfortunate, but until government officials are personally liable for violations of civil rights, they will continue to engage in these practices.
My view: if tried in criminal or civil court for a case such as this, and found guilty, the official should pay. If found not guilty, the city should cover legal expenses, etc.