Attacked by neighbors dog (again) need advice

First off, my dog and I are fine physically.

Background:
1) I love dogs, grew up with them and have one now (German Shepherd Mix almost 2)
2) All dogs can be mean/vicious/attack. Bigger dogs can do more damage, but my BIL's beagle is one mean bugger, so this ISN'T about a breed
3) My neighbor in question is a triathlete (Ironman actually) who I see out running/riding and at races quite often (they live less than 1/2 mile from us)
4) I get not all dogs are friendly but MOST will do the sniff thing then decide what is next
5) June 08 - I was walking our dog, Pepper, then a 6 month old puppy when their 1 dog (a pit mix for the record) I heard their dogs (other is a greyhound (muzzled as he eats anything) running in the yard. We are across the street (I also get dogs don't get property lines, if they can see it it's theirs). Anyway, as we walk past the pit mix runs down the driveway, across the street and bit my dog on her back leg. I threw the water bottle I had, bag of poo, yelled, etc. The other dog also joined in the mess but being muzzled wasn't as big a concern. Wife comes out to "try" to collect the dogs (this takes some doing, they don't listen). I get home and find puncture wound on dog. Go to vet next morning, need shot, antibiotics, etc. Total vet bill $127. Neighbor comes by, very apologetic, pays for vet bill in full, puts dog on a good size chain, won't be free in the yard etc. I did file a police report after some consideration but our mutual neighbor who is on the town PD said I should, what if it was some grandmom or kid walking Fluffy? Dog had to be quarantined for 10 days. Didn't press charges, just report on file. Neighbor ok with everything.

Since then I have NEVER seen the dog not on the chain attached to the house, unless he is on a leash running with said neighbor.

Today I went for a run with Pepper, as we approach their yard I can see the dog chained to the house. Start to walk, briskly, not run, to get past house. Dog starts barking, lunging, etc. and then THE CHAIN BREAKS! Dog rushes down driveway, into street, I am crossing street to open yard, Pepper is attached to me via a cardiocanine belt so I'm not worried about her getting away. The dog charged, growling in a very menacing tone. I pulled this citronella spray I carry (learned lesson last time) and spray said dog. NO EFFECT. I finally kick the dog when it get close enough and it backs off. I am screaming for the owner at the top of my lungs. Cars stop on the road, dog crosses back to driveway and I start to backup the street toward home. Owner finally comes out and has to chase his dog, only caught him by stepping on broken chain. Very apologetic, are we ok (far as I can tell) can't even remember his phone number (wanted me to call if there was a problem). Meanwhile his greyhound is now running around in the street as he takes pit mix back to house.

So here is my question (finally, sorry it's so long). What now? Hubby thinks I should file another report as the dog is obviously vicious and has repeated attempts to attack us OFF it's property. On one hand I agree, but I know what will probably happen to the dog if I do. What would COJ do?

Lani