So....
What did you end up doing?
In my area, the sheriff's deputies come out and arrest people for the kind of thing you've described.
Wasn't very long ago that someone got arrested for killing a pig to eat!
Problem was... It wasn't done particularly efficiently.
Article:
http://www.macon.com/news/loca...
A lady that I know used to keep poodles... In cages.
Police confiscated all her dogs, and gave her a court date.
Article:
http://www.macon.com/news/loca...
I think that this lady (your neighbor) is very close to losing her entire family.
Maybe call DFCS if calling authorities about the animals doesn't achieve any results.