It doesn't look like it's illegal as long as you clean it up immediately, as you were doing:
Quote:
§ 349-18. Removal of excrement.Every owner of a dog shall immediately remove excrement left by the dog on property anywhere within the City.
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As you point out, you can't necessarily control where your dog decides to go...and even gov't can probably see that!
But from what I'm reading in the ordinance, you were following the letter of the law. So maybe the guy was just having a bad day...
However, keep in mind that I'm writing from Wisconsin, so I don't know your local laws. Is there a number at City Hall you can call with questions?