so angry I might go into labor

Sorry if this is a long rant. I'm 30 weeks tomorrow and raging angry. In Aug 2015 I bought a house. It's on a corner lot, It has a fenced in backyard with a privacy fence on the side near the road, picket fence between my yard and the neighbors. When I moved in I had two dogs. A 9yo lazy basset hound and a 7yo energetic mastiff mix. I wanted to get a 3rd more energetic dog so my mix would have a friend. In dec 2015 we adopted a boxer mix from the shelter. The first few weeks were spent with us fixing weak areas of the picket fence because she was new and kept trying to escape. She got out twice during this time, and was safely returned to our yard within 5 minutes because we never leave them outside alone. We reenforced it with lattice and nailed all loose pickets. We also put up a baby gate so the dogs couldn't get onto a back deck where they could jump out of the yard. In Feb 2016 my neighbor, who has a tiny dog that he walks in his backyard on a leash questioned my mother while she was visiting one day about the dogs and who owns them and saying how he has kids and they're vicious and he's concerned for his family. Knowing how defensive I can get, I wrote him a letter explaining how we are doing our best to keep the dogs contained and sent copies of all their shot records and licenses as well as all of our contact information and an offer to meet the dogs in person so that he could feel more comfortable. He stopped Speaking to us. He would wear a hood every time he was outside when we were. Fine. 8 months have gone by with absolutely no communication between us, not even a friendly hello. In the meantime we have had no issues with the dogs getting out, had several parties this summer with small children from 10 months to 12 years. I found out I'm expecting. All was calm. We purposely would always look to see if their dog was outside before letting ours out because their dog tends to run to the fence and bark and mine want to play with it so they get riled and bark back. They do not give us the same courtesy and consistently bring their dog out when we are clearly outside. When that happens, we brig My dogs aren't very vocal. The newest rescue barks when she hears other dogs barking, or when someone is on the porch or comes in that she doesn't know. Other than that she's pretty quiet. So today I had some things that needed to be moved into my house. The dogs and I were all in the backyard we were out for about 20 minutes. The neighbor brought out her dog and another small dog I've seen a few times but I'm not sure if it's hers or not. As per usual she let her dogs come right up to the picket fence and they were barking which alerted my dogs to their existence. My dogs went to the fence tails wagging and went nose to nose with hers. She then starts yelling at hers and pulls them back which cause mine to push on the fence to get closer. Of course two pickets come loose and out run my girls tongues out tails wagging. Neighbor starts screaming like her dogs are being murdered. Picks them up and runs onto her deck. While I run into my house grab leashes run out the front door and next door into her yard to collect my vicious dogs. I leash them up, while she screams and curses at me and yells about how my dogs are too big and she's reporting me and it's my responsibility to fix the fence. I agree it's my fence. I agree I need to fix it. I don't want my dogs out as much as she doesn't. But the fact is, she allows her pets to come up to the fence and antagonize mine. She could easily take her small dogs out in her front yard. She could easily look to see if we're out and wait until we aren't. Instead she adds fuel to the fire. I want to stress, no one got bitten, no one got hurt, my dogs has tails wagging the entire time and did not show an ounce of aggression. And mine are 60 and 70 lbs so size wise they very easily could have snatched up her 20 lbs dogs. But they aren't dog or people aggressive. They just wanted to play. So now I'm sitting here waiting for the police to show up at my house, fuming mad that this is even a thing. I don't have issues that ever need to be settled by law enforcement. This is my dream house with nightmare neighbors. My dogs are both licking my face while I write this because they know I'm so upset. I don't even know what to do about this. Oh and putting up a privacy fence on that side would cost about $2000 which is not in the cards right now. We need to many things for the baby. And the fence is secure. Bleh. How is this issue ever going to be resolved. Any one with advice?