First off------stop putting the pepper out ------if her dogs get infections or have a vet visit because of it? You're liable.
If her dogs are in YOUR yard and bite your children or do damage? SHE is liable but only if you call the police and the ACO (animal control officer) is also called an it is documented. The ACO should check to see that the dog(s) at the least have their rabies and dog tags (if so in your county). If not she will get a citation for dog at large, and if no rabies or dog tags? It's a pretty hefty fine. Usually most counties have a 3x and the dog is out rule. Meaning if they are called out 3x to the property to get the dogs? The dogs are permanently removed and they go to court. While this is good for your childen, and the dogs (who in my humble opinion are not being taken care of properly or the parents just are not taking necessary steps to secure the property well for their animals) it can cause a LIFETIME of bad feelings between neighbors.
HOWEVER ----
YOU have an issue with presents and digging. You've asked them to help because you have a child that has issues with animals. Also you don't want to keep cleaning up poop. Honestly if I had to clean it up I'd fling it back over the fence. Nicely of course but I'd put it back where it belongs especially if I had to scoop poop frrom a critter I didn't own. Secondly? If the dogs keep digging? There are a NUMBER of things that could be going on......and the part about her stating......MY KIDS ARE HEART BROKEN???? Well booooo frimpin hoo......If you took care of them in the first place and watched them.....or took precautions? They would not be getting out.
SO here's a few things THEY can do and if they don't......You're going to HAVE to do----or keep on with the problem and poop.
1.) FIND OUT if they have moles or something. If there are moles on the property line? DOGS WILL DIG like back hoes to get them. Casper is like a drag line trencher if he thinks he hears a mole.. Otherwise he is a mellow fellow, and couldn't lift a paw to scratch dirt. Hear a mole? HOLY TOLEDO. My yard will look like a bombing range. BUT he will GET THAT MOLE.
2.) So why doesn't he get out if the mole goes NEAR the fence? Ahhhhh well ---I love my animals and I love my neighbor. SO the ENTIRE fence line - all 2 acres of it -----has galvanized cow fence buried 2' deep under the chain link. A few times they've dug.....and dug.....and dug....to get a mole...but after about 2' of digging....and hitting fence? They give up. 2" mole is not worth all that work. FUn while it lasted but just not worth the headache.
3.) No energy or expense for burying the fence FOR your dogs? ROCKS.....It's called RIP RAP......you see it all the time on construction sites.....gray or pink granite chunks....You still have to dig a trench.....and bury it...you just can't leave it set on top.....they'll back up and dig BEHIND it and under it......but if it's buried 2' in the ground? They'll get bored easily and stop.
4.) Suggest that they have a 10'x10" sand box FOR THEIR DOGS and fill it with things to dig up .......it's also a really good punishment for the kids to have to take a shovel and rake and replace the DOG SAND.
5.) ARE THEY SPAYED AND NEUTERED? Because if they aren't? YOUR battle is lost before it's over. A female in heat can be smelled a mile away and the males will kill themselves to get out.
6.) SO the kids LOVE THEIR DOGS? Are they being exercised and walked and played with for at least 30 minutes a day? NO? Then they're bored. ANd they're going to continue digging. SUGGEST THE SAND BOX, COLLAR AND LEASH and tell them they need walked.
And just fyi///////even if you do all the above There is a chancce that they'll climb.....over the fence. SO personally? I'd wait till spring and if you can afford it? I'd buy a length of privacy fence, bury 2' of galvanized cow fence and be done with the poop, the neighbors and their dogs. That way my son would not have to worry about the dogs.......and I wouldn't have to worry about ........well digger the dog and his fantastic bowels.
I've kept too many of the neighbors dogs ====whatever they were....but we tie them up and take them back to the owners and say ------we live up there on the corner with the Big Pits......next to the main road your guys got out and could have been killed, I'm sure you didn't mean for them to get out, but I'm glad I was able to return them on a leash instead of in a bag. DO you need us to help you walk the fence and figure out how they got out? We'd be glad to help. Most say no.....and since we've said that? We've had NO repeat visitors. Mostly because DF usually adds......I'm sure glad my fiance got your kids on a leash before the big dog ate your dogs. (he doesn't say it in a kidding tone) Everyone knows our dogs are spoiled, well trained.....and they're not sure if he's kidding or not. No one's ever asked. lol.
If you persist in having troubles with them? Call the humane society and ask what they suggest. They may have more solutions for you to work something out. Maybe they have too many dogs and need to give one up for adoption. Hard to tell.
Good luck. ------DF said he wouldn't fling poo.....he'd put it in a paper bag and set it on their porch with a note. I digress .......perhaps he's right but I'm such a snot I'd be tempted to light it on fire and ring the door bell. .....He just walked away moaning.