That means it is spreading it spores and going to produce more......you might need to get rid of the mushrooms. So can you keep your dogs safe in another area while you treat this area for fungus. You need to check at the lawn & garden store as they have lots to choose from. Some you have to mix yourself which might be cheaper or the one made up already which is more money. Wear old long clothes, gloves, mask, goggles & hat......follow the directions carefully. Keep children & pets away until this is dried. When you mow the lawn next time use a bag to catch everything where the mushrooms were located.....bag & dump that in the trash can.......This will help by getting them contained. Don't be upset if any grass dies....just spray where the mushroom was and 20 inches around it. The grass will come back. Is there a depression there or is the water pooling right there?