Dog killing cats

Cu

So I have situation and my husband and I disagree on how to handle it.

I have a 72lb lab/pit mix who is contained in my yard with an invisible fence.

My neighbors have free roaming indoor/outdoor cats. About 5 or so. They have names for all of them and feed them.

I told neighbors years ago if your cat comes into my yard I cannot promise their safety. They said they understood.

We have a beware of dog sign.

In late 2018 my dog killed one of their cats, the cat was on my deck on my property.

I boxed up the cat and went to the neighbor and they dealt with it and said they’d start keeping their cats in and that my dog was just being a dog.

Today my cat killed another one of their cats.

My husband says we shouldn’t tell them our dog killed another cat. He’s afraid of legal action and our neighbors getting upset.

I feel like they should know. Our dog isn’t going on their property and they know it’s an issue.

What would you do? Would you tell your neighbors? Or dispose of the cats without telling them? Do you feel there’s a case against myself or my dog? Is there something else I should be doing to protect these cats?

Side note: My dog is not eating them or full mauling ripping both the cats he’s killed appear like he’s grabbed and shaken them and they’d died. I think when they run from him it becomes a game to him. I do not supervise him outside all the time- he doesn’t get out so I let him have free time outside.

***the neighbor was told about both incidents. My husband didn’t want to cause problems and to try to shield our dog and ourselves from any legal issues ***

Also I have a chain link fence in addition to my invisible fence and the neighbors have a privacy fence.

And this is the terrible beastie.