I don't get 'religious freedom'. Isn't that already included in freedom of speech? People should follow the law, and they shouldn't be treated differently because of their religion.
If religion wasn't part of the law then courts wouldn't be able to order the city to pay them. Like it or not but it was their right to sue and the court thinks that they are right and that the city didn't follow the law.
A change of law would be the only thing to prevent this.