Not a lawyer, but this is my understanding. To sue them, they need to sue for damages, but instead of going for some large amount that their fellow citizens would have to ultimately foot the bill for if they sue the town, they can win the case and get it in legal record that the town officials were in the wrong. The dollar is just a technicality so legal action can be taken.
I just had to correct a deed to a former property I was still getting tax bills for because the title company screwed up the paperwork, so what I had to do was “sell” that parcel of land to my ex for $1 so a legal transaction could be recorded.